The Central Bank of Nigeria (CBN) has revoked the banking licence of Heritage Bank following its inability to meet customer needs and pay owed funds.
“In accordance with its mandate to promote a sound financial system in Nigeria and in the exercise of its powers under Section 12 of the Banks and Other Financial Institutions Act, hereby revokes the Licence of Heritage Bank Plc,” a statement from the apex bank read on Monday.
“The action has become necessary due to the bank’s breach of Section 21(1) of BOFIA 2020. 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,” the regulator added.
The Banks and Other Financial Institutions Act (BOFIA) mandates the CBN to turn over significantly or critically under-capitalised banks to the deposit insurer for distress resolution.
Officials of the Nigeria Deposit Insurance Corporation (NDIC) had earlier this morning visited several branches of the bank to conduct investigations after several reports had indicated that the bank was under serious challenges, especially with the withdrawal of funds.
For over five years, Heritage Bank has been in the news over indebtedness and it is not clear what will happen to workers at the moment.
… This is a developing story.
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