The Central Bank of Nigeria (CBN), Monday, announced the revocation of the operating licence of Heritage Bank Plc with immediate effect.
In a statement issued by
CBN acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank said the move was in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 (1l of the Banks and Other Financial Act (BOFIA) 2020.
The central bank pointed out that the Board and Management of the bank had not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.
This followed a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.
Sidi Ali said, “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.”
Meanwhile he Nigerian Deposit Insurance Corporation (NDIC) visited several Heritage Bank branches on Monday morning as talks of a distress resolution takeover gather steam.
One of the officials at a branch office had a memo that showed they were on “special assignment.” The official declined to comment on the memo or provide any details.
At least two persons with direct knowledge of the situation claimed the special assignment is connected to a distress resolution and a takeover of Heritage Bank.
The Banks and Other Financial Institutions Act (BOFIA) mandates the Central Bank to turn over significantly or critically under-capitalised banks to the deposit insurer for distress resolution.
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