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JUST IN: CBN Revokes Operational Licence of Ailing Heritage Bank

JUST IN: CBN Revokes Operational Licence of Ailing Heritage Bank

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

A statement by the Ag. Director, Corporate Communications of the Appex bank, Hakama Ali, on Monday, said the move was under its mandate to promote a sound financial system in Nigeria, and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.

According to Ali, the bank had breached Section 12 (1) of BOFIA, 2020, adding that 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.

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.”

Consequently, the CBN said it took action to strengthen public confidence in the banking system, and ensure that the soundness of the financial system is not impaired.

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