BusinessHighlight

Update: CBN revokes Heritage Bank’s operating license, appoints NDIC as liquidator

The Acting Director of Corporate Communications at the Central Bank, Hakama Ali, announced on Monday that the bank's actions were taken to maintain a stable financial system in Nigeria, as authorized by Section 12 of the BOFIA Act of 2020.

1.9k
Advertisement




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

The Acting Director of Corporate Communications at the Central Bank, Hakama Ali, announced on Monday that the bank’s actions were taken to maintain a stable financial system in Nigeria, as authorized by Section 12 of the BOFIA Act of 2020.

According to Ali, the bank violated Section 12(1) of BOFIA 2020 and failed to improve its financial performance, posing a risk to financial stability despite efforts by the board and management.

It said: “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.

Accordingly, the CBN intervened to restore public trust in the banking system and prevent any potential harm to the overall stability of the financial sector.”

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,” it said.

Author

See also  Despite APC’s 31-State Dominance, Dele Momodu Still Predicts Atiku Victory in 2027

Leave a comment

Related Articles

NiMet to Journalists: Report Weather and Climate News Accurately

By Omoyeni Ojeifo The Nigerian Meteorological Agency (NiMet) has urged media professionals...

Two Mexicans, Four Nigerians Arraigned in Oyo Over Alleged Methamphetamine Manufacturing

By Omoyeni Ojeifo Two Mexican nationals and four Nigerian collaborators accused of...

Power Minister Tegbe, FGN Power MD Anuwe, To Lead Talks on Nigeria’s 1trillion Naira Economy, Power Supply

By Joycelyn Ellakeche Adah Minister of Power Joseph Tegbe, and the Managing...

Situation Room Slams Sky-High Billboard Costs Ahead of 2027 Polls

By Omoyeni Ojeifo The Nigeria Civil Society Situation Room has faulted presidential...