Heritage Bank: CBN Denies Plan To Revoke Licenses Of Three Other Banks

In an apparent move to boost public confidence, the Central Bank of Nigeria (CBN) has denied a media report which claimed it is set to revoke the licenses of Unity Bank, Keystone Bank and Polaris Bank. The apex bank, in a post via its official X account on Tuesday, urged members of the public to dismiss the report as fake news. Sharing a screenshot of the publication, CBN wrote: “This content is fake and not from the Central Bank of Nigeria.” The dismissal of the report comes on the heels of the decision by the CBN to revoke the operating license of Heritage Bank. Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC), has assured customers of banks in the country of the safety of their deposits and investments. The NDIC assured the banking public that banks whose licenses have not been revoked remain safe and sound. It also urged depositors and other stakeholders to continue their banking businesses without fear.

CBN Revokes Heritage Bank License 

The Central Bank of Nigeria (CBN) has announced the revocation of Heritage Bank’s operating licence.  This decision was revealed in a statement by the Acting Director of Corporate Communications, CBN, Hakama Sidi Ali.  Ali stated: “The Central Bank of Nigeria, in accordance with its mandate to promote a sound financial system in Nigeria and exercising its powers under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.” She explained that the revocation was necessary due to the bank’s violation of Section 12 (1) of BOFIA, 2020. The bank’s management had failed to improve its financial performance, posing a threat to financial stability. “This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the licence the next necessary step.” Ali assured the public that this action is aimed at maintaining confidence in the banking system and ensuring the overall soundness of Nigeria’s financial sector. The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of the bank in line with Section 12 (2) of BOFIA, 2020. “We wish to assure the public that the Nigerian financial system remains on a solid footing. The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system,” Ali concluded.