The CBN said the action to shutdown the bank drew strength from its regulatory powers and in accordance with its mandate to promote a sound financial system in Nigeria.
The Central Bank of Nigeria (CBN) announced on Monday the immediate revocation of Heritage Bank’s license due to its inability to improve its financial performance, posing a threat to financial stability.
This was contained in a statement signed by Mrs Hakama Sidi Ali, the Spokesperson of the apex bank and made available to the media.
The CBN said the action to shutdown the bank drew strength from its regulatory powers and in accordance with its mandate to promote a sound financial system in Nigeria.
The statement said: “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
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.”
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