back to top
HomeBusinessCBN Cancels Heritage Bank's License

CBN Cancels Heritage Bank’s License

The announcement was made by the Central Bank of Nigeria (CBN) that Heritage Bank’s banking license has been revoked.

According to Mrs. Hakama Sidi Ali, Ag. Director of Corporate Communications, the revocation was carried out in line with the organization’s mission to support a stable financial system in Nigeria.

“The Central Bank of Nigeria (CBN), in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the license of Heritage Bank Plc with immediate effect,” the statement read. The CBN’s mission is to support a strong financial system in Nigeria.

According to Ali, the bank violated Section 12 (1) of the BOFIA, 2020, which is why this action is now required.

The top bank went on to say that the bank’s management and board have failed to enhance the institution’s financial performance, posing a risk to the stability of the financial system.

According to Ali, this came after a time when the CBN interacted with the bank and suggested a number of supervisory actions meant to stop the downturn.

She emphasized, “Unfortunately, the bank has not improved and has no realistic chance of recovery, thus the next logical step is to revoke the license.

As a result, the CBN has taken this step to preserve the stability of our financial system and to bolster public trust in the banking sector.

In line with BOFIA, 2020 Section 12(2), the Nigeria Deposit Insurance Corporation (NDIC) is therefore designated as the bank’s liquidator.

“We want to reassure everyone that the Nigerian financial system is still stable. We remain committed to taking all necessary measures to guarantee the safety and soundness of our financial system, as evidenced by the action we are taking today.

Sodiq Soda
Sodiq Soda
I’m Sodiq Oluwadamilare Soda, a Web Developer/Web Design also a Graphic Designer.

LEAVE A REPLY

Please enter your comment!
Please enter your name here