By Sabiu Abdullahi
The Central Bank of Nigeria (CBN) has revoked the banking licence of Heritage Bank Plc, effective immediately.
This decision was made due to the bank’s failure to improve its financial performance, which posed a threat to financial stability.
According to a statement released by the CBN, the bank’s management was unable to stem the decline despite various supervisory steps taken by the regulator.
With no reasonable prospects of recovery, the CBN took this action to protect the financial system and maintain public confidence.
The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, following the Banks and Other Financial Act 2020.
The CBN assured the public that the revocation of Heritage Bank’s licence will not impact the overall health of the financial system.
“The Nigerian financial system remains on a solid footing. We are committed to ensuring the safety and soundness of our financial system, and this action reflects that commitment,” the statement read.
This move is seen as a significant step by the CBN to maintain the stability of the financial system and protect depositors’ funds.
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