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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.

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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.

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