Why CBN Revoked Heritage Bank’s Banking Licence
The central Bank of Nigeria (CBN) has announced revocation of banking licence of Heritage Bank with immediate effect.
The apex bank, according to a statement signed by its Acting Director, Corporate Communications, Hakama Sidi Ali, took the decision over financial instability of Mr. Akin George-Taylor led financial institution.
The CBN, in the communication made available today, June 3, 2024, via its official X handle (formerly Twitter) said: “The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.”
The CBN statement read…
The Central Bank of Nigeria (CBN), in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Pic with immediate effect.
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 to financial stability. 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.
Hakama Sidi Ali (Mrs.) Ag. Director, Corporate Communications
June 03, 2024
