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CBN Revokes Heritage Bank’s Operational License for Poor Financial Performance

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On Monday, June 3, 2024, the Central Bank of Nigeria (CBN) disclosed the revoke of the operating license of Heritage Bank Plc.

It mentioned that its decision was due to the bank’s poor financial performance.

Moreover, the license revoke takes effect immediately.

The CBN revealed the new development through a press release on Monday.

According to the apex bank, Heritage has consistently displayed financial instability while breaching regulatory requirements.

Further, the CBN noted that the bank failed to comply with Section 12(1) of BOFIA 2020, prompting the regulatory intervention.

Moreover, the apex bank pointed out how Heritage Bank’s financial health remained passive amid several supervisory measures to change it.

Notably, the consistent underperformance of the bank is posing remarkable risks to financial stability. So, the CBN deemed it fit to revoke its banking license.

The apex bank’s statement reads: “The Central Bank of Nigeria (CBN), following 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 Act (BOFIA) 2020, at this moment revokes the license of Heritage Bank Plc with immediate effect.

Moreover, the CBN indicated that its decision against the bank upholds the soundness and integrity of the financial system.

Also, it will help strengthen public confidence in the Nigerian banking sector.

NDIC Will Liquidate Heritage Bank

According to Section 12 (2) of BOFIA 2020, the Nigeria Deposit Insurance Corporation (NDIC) is the liquidator of the bank.

Meanwhile, the CBN adjusted the maximum deposit insurance coverage levels for different banks.

This move would allow the bank’s customers to get about N5 million in payment from NDIC based on the clients’ deposits in the bank.

Heritage Bank started operating in Nigeria on March 14, 2013, as a regional bank. It took over the license and structure of the old Societe Generale Bank of Nigeria.

Notably, the CBN shut down the latter bank due to its failure to meet the N25 billion capital requirement for a national bank in 2006.

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