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CBN revokes Heritage Bank’s licence over regulatory infractions

Photo of Heritage Bank and CBN Logos Credit: FRCN

*The Central Bank of Nigeria asserts revocation of Heritage Bank Plc has become necessary due to ‘the bank’s breach of Section 12 (1) of BOFIA, 2020’, as the Board and Management of the commercial bank have failed to improve its financial performance, thereby constituting ‘a threat to financial stability’ in the country’s banking industry

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) says it has revoked the licence of Heritage Bank Plc with immediate effect.

The CBN disclosed the development in a statement Hakama Sidi Ali, Acting Director, Corporate Communications, issued Monday, June 3, 2024.

The Bank stated: “The 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.”

The Bankers’ Bank, in the statement, also stressed the measure was necessitated after the Heritage Bank’s failure to recover, following a period during which the CBN had engaged with the bank and subsequently, prescribed various supervisory steps intended to stem the decline.

The CBN further noted it decided to revoke the bank’s operating licence in order to strengthen public confidence in the banking system, and ensure that the “soundness of our financial system is not impaired.

The banking sector regulator has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of the Heritage Bank, in accordance with Section 12 (2) of BOFIA, 2020 in Nigeria.

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