Banking Digest … banking news you can use 
The Central Bank of Nigeria (CBN) has revoked the banking licence of Heritage Bank Plc. The decision, announced on June 3, 2024, takes immediate effect. This action is rooted in the bank’s failure to comply with financial requirements stipulated under Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020. The CBN highlighted that Heritage Bank’s financial performance had been steadily declining, posing a significant threat to the stability of Nigeria’s financial system despite various supervisory interventions.
The CBN’s revocation was necessitated by the bank’s persistent financial underperformance and inability to improve its financial health. The CBN stated that the bank had repeatedly breached Section 12 (1) of BOFIA 2020, and despite efforts to stabilize the situation, Heritage Bank showed no reasonable prospects of recovery. This continued deterioration was deemed a risk to the overall stability of the financial sector.
To manage the aftermath of the licence revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank. The NDIC’s role will involve overseeing the process of liquidation, ensuring that depositors’ interests are protected, and maintaining confidence in the financial system.
The revocation of Heritage Bank’s licence is part of a wider regulatory clampdown by the CBN. This broad sweep indicates the CBN’s rigorous commitment to maintaining financial stability and enforcing compliance across the financial sector.
The CBN has assured the public that despite these significant actions, the Nigerian financial system remains robust and on solid footing. The central bank reaffirmed its dedication to ensuring the safety and soundness of the financial system, emphasizing that these measures are necessary to protect depositors and maintain public confidence.
The CBN’s revocation of Heritage Bank’s licence underscores its stringent regulatory stance and its ongoing efforts to ensure the health of the financial sector. The appointment of the NDIC as liquidator is aimed at minimizing disruption and safeguarding depositors’ interests.
