MON JUNE 03 2024-theGBJournal| The Central Bank of Nigeria (CBN), today revoked the licence of Heritage Bank Plc with immediate effect, citing the bank’s breach of Section 12 (1) of BOFIA, 2020.
The apex in a statement 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.
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 CBN said.
The Central Bank has immediately appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.
”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 CBN said.
Meanwhile, persons familiar with bank told theG&BJournal that Heritage Bank is already engaging the CBN.
”The bank’s management team are currently in Abuja meeting with the Central Bank team, the management are confident the issue will be resolved,” our sources said.
But analysts are skeptical about any immediate resolution saying that the ample time given to bank’s management to resolve their financials and their failure to do so is enough evidence that the bank is indeed in dire straits.
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