The Central Bank of Nigeria (CBN) has cancelled the license of Heritage Bank Plc, effective immediately.
The CBN made this decision because Heritage Bank failed to improve its financial situation, which was seen as a risk to financial stability.
Sidi Ali, the Acting Director of Corporate Communication for the CBN, shared this news in a statement on Monday.
The CBN stated that the bank’s management could not stop the decline, despite several efforts by the CBN to help. With no hope of recovery, the CBN took this step to protect the financial system and keep public trust.
“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 said.
Beyond Boders also learned that the Nigeria Deposit Insurance Corporation (NDIC) will now handle the liquidation of Heritage Bank, according to the Banks and Other Financial Act 2020.
This move by the CBN aims to keep the financial system stable and protect the money of depositors.
The public has been assured that taking away Heritage Bank’s license will not harm the overall health of the financial system.
