By: Amadi Vincent
The Central Bank of Nigeria (CBN) has revoked the license of Heritage Bank Plc with prompt effect.
The CBN said the activity became essential due to the bank’s breach of Area 12 (1) of the Banks and Other Money related Act BOFIA, 2020.
The apex bank too said the board and management of the bank have not been able to progress the bank’s financial performance, which it noted to have constituted a danger to monetary stability.
CBN’s spokesperson, Hakama Ali, in an explanation on Monday, said the withdrawal of the bank’s operational license is in accordance with the apex bank’s order to advance sound money-related framework in Nigeria, and in the exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
It noted that the CBN had locked in with the bank and prescribed different supervisory steps aiming to stem the decline.
“Regrettably, the bank has kept on endure and has no sensible prospects of recuperation, subsequently making the repudiation of the permit the following essential step,” Ali said.
The CBN further said it took the action to reinforce open certainty within managing an accounting system and ensuring that the soundness of the money-related framework is not disabled.
In line with Section 12 (2) of the Banks and Other Financial Institutions Act (BOFIA) 2020, the Nigeria Deposit Insurance Corporation (NDIC) has taken over the administration of Heritage Bank.
“We wish to assure the public that the Nigerian financial system remains on a strong footing. The action we are taking today reflects our continued commitment to take all necessary steps to guarantee the security and soundness of our money related system,” the statement peruses.
