The Central Bank of Nigeria, CBN, has revoked the operating license of Heritage Bank Plc, effective immediately.
The decision comes after a period of sustained financial struggles at the bank.
According to a statement issued by the CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, the bank’s management has not been able to “improve the bank’s financial performance, a situation which constitutes a threat to financial stability.”
The CBN had previously engaged with Heritage Bank and implemented various supervisory measures to address its financial woes. However, these efforts proved unsuccessful, prompting the apex bank to take this decisive step.
“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,” the statement highlighted.
To ensure a smooth transition and protect depositors’ funds, the Nigeria Deposit Insurance Corporation, NDIC, has been appointed as the liquidator for Heritage Bank.
The CBN has assured the public that the revocation of Heritage Bank’s license is an isolated incident and will not negatively impact the overall health of the Nigerian financial system.
“The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system,” Ali stated.
Ezinwanne Onwuka, senior staff reporter and columnist with WAP is a Nigerian-based writer and content developer. She holds a Bachelor of Arts degree in Philosophy from the prestigious University of Nigeria, Nsukka. Her interests include reading, writing, researching and graphic designing.
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