CBN revokes operating license of Heritage Bank

CBN revokes operating license of Heritage Bank

Story from Aliyu Askira, Kano

The Central Bank of Nigeria (CBN) has revoked the operating license of Heritage Bank, one of the prominent commercial banks in the country.

The decision to withdraw the license is effective immediately.

The announcement of the CBN’s decision was made through a statement released on Monday, June 3, by the Acting Director of Corporate Communications, Hakama Sidi Ali.

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The statement read: “This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat.

“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.

“Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.

“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

“We wish to assure the public that the Nigerian financial system remains on a solid footing. The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system.”