The Central Bank of Nigeria (CBN) revoked Heritage Bank’s operating license Wednesday, citing the bank’s board of directors’ inability to enhance the bank’s financial performance.
The Nigeria Deposit Insurance Corporation, or NDIC, announced that it has started the bank’s liquidation process and that it will pay each depositor’s guaranteed amount of N5 million.
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This comes after a time when the CBN interacted with the bank and suggested some supervisory actions meant to stop the downturn. Unfortunately, the bank has not improved and there are no realistic chances that it will, thus the next required step is to revoke the license.
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In line with BOFIA, 2020 Section 12(2), the Nigeria Deposit Insurance Corporation (NDIC) is therefore designated as the bank’s liquidator.
“We want to reassure everyone that the Nigerian financial system is still stable. We remain committed to taking all necessary measures to guarantee the safety and soundness of our financial system, as evidenced by the action we are taking today.”