CBN Explains Reasons Behind Revocation of Heritage Bank’s License

Emma Bulletin
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CBN Explains Reasons Behind Revocation of Heritage Bank’s License

The Central Bank of Nigeria (CBN) has revoked the operating license of Heritage Bank, citing the failure of its board of directors to improve its financial performance.

This decision, according to the CBN, was made in accordance with its mandate to promote a sound financial system in Nigeria and exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.

In a statement by the Acting Director, Corporate Communications, CBN, Hakama Sidi Ali, the CBN expressed concern over the bank’s inability to enhance its financial standing despite various supervisory steps prescribed to stem its decline.

The revocation of the license, according to the CBN, was necessary to strengthen public confidence in the banking system and safeguard the financial system’s soundness.

READ ALSO: NDIC Commences Refund Process for Heritage Bank Depositors

Consequently, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, in line with Section 12 (2) of BOFIA, 2020. The NDIC has commenced the liquidation process, starting with the verification and payment of insured deposits to bank depositors.

The Director, Communication & Public Affairs, NDIC, Bashir Nuhu, stated that depositors with alternate accounts within the industry would be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN). Depositors with funds exceeding N5 million would receive liquidation dividends upon the realization of the bank’s assets and recovery of debts owed to the bank.

READ ALSO: CBN Revokes Heritage Bank’s Operating License

Depositors without alternate bank accounts are advised to visit the nearest branch of the bank with proof of account ownership and identification for verification and subsequent payment of insured sums. Creditors are also urged to file their claims at the nearest branch or via the online platform.

The NDIC assured the banking public of its commitment to the safety of depositors’ funds in all licensed banks, emphasizing that banks whose licenses have not been revoked remain safe and sound.

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