Heritage Bank Plc’s banking license has been immediately revoked by the Central Bank of Nigeria (CBN).
In a statement released on Monday, Appex Bank’s Ag. Director of Corporate Communications, Hakama Ali, stated that the action was taken in accordance with its mandate to support a stable financial system in Nigeria and in the exercise of its authority under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
Ali claims that the bank violated Section 12(1) of the BOFIA, 2020, and that the inability of the bank’s management and board to enhance the bank’s financial performance poses a threat to the stability of the financial system.
It stated, “This comes after a time when the CBN spoke with the bank and suggested a number of supervisory actions meant to stop the downturn. Unfortunately, the bank has not improved and there are no realistic chances that it will, thus the next required step is to revoke the license.
As a result, the CBN stated that it took steps to bolster public trust in the banking sector and guarantee that the stability of the financial system is not compromised.
In light of this, the CBN has designated the Nigeria Deposit Insurance Corporation (NDIC) in accordance with BOFIA, 2020, Section 12(2) as the bank’s liquidator.
“We want to reassure everyone that the Nigerian financial system is still stable. Our ongoing commitment to taking all necessary measures to guarantee the safety and soundness of our financial system is reflected in the action we are taking today,” the statement read.
