* Appoints NDIC as liquidator
The Central Bank of Nigeria (CBN) has revoked the operating licence of Heritage Bank Plc with immediate effect.
The acting Director, Corporate Communications of the appex bank, Hakama Ali, announced the revocation through a statement on Monday morning, saying that the decision was taken 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.
According to Ali, Heritage Bank breached Section 12 (1) of BOFIA, 2020, adding that the Board and Management of the bank have not been able to improve its financial performance, a situation which constitutes a threat to financial stability.
The statement continued: “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 said it took action to strengthen public confidence in the banking system, and ensure that the soundness of the financial system is not impaired.
To this effect, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank under 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,” the statement added.
