Nigeria’s Central Bank (CBN) revoked Heritage Bank’s operating licence Wednesday, citing the bank’s board of directors’ failure to improve its financial performance. Meanwhile, the Nigeria Deposit Insurance Corporation, or NDIC, announced that the bank has begun liquidation and will pay the insured amount of N5 million per depositor.
Acting Director, Corporate Communications, CBN, Hakama Sidi Ali, issued a statement announcing the apex bank’s decision to revoke the bank’s licence, saying: “The Central Bank of Nigeria (CBN), in accordance with its mandate to promote a sound financial system (heritage bank) in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.
“This action is necessary owing to the bank’s violation of Section 12 (1) of the BOFIA, 2020. The bank’s board and management have been unable to improve its financial performance, posing a threat to financial stability.
This comes after the CBN intervened with the bank and imposed a number of supervisory measures to halt the drop. Regrettably, the bank has continued to deteriorate and has no reasonable prospects of recovery, making licence revocation the next essential step. “As a result, the CBN has taken this measure to boost public trust in the banking system and guarantee that our financial system remains stable (heritage bank).
“The Nigeria Deposit Insurance Corporation (NDIC) is now appointed as the bank’s liquidator in accordance with Section 12(2) of the BOFIA, 2020. “We want to reassure the public that Nigeria’s financial system is stable. The actions we are taking today demonstrate our ongoing commitment to taking all necessary steps to maintain the safety and soundness of our financial system.”
In a statement announcing the commencement of the liquidation of the bank,Director, Communication & Public Affairs, NDIC, Bashir Nuhu, said: “Following the revocation of the banking licence of Heritage Bank Plc by the Central Bank of Nigeria (CBN) today, June 3, 2024, and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator, pursuant to Section 12(2) of BOFIA, 2020, the corporation wishes to announce to depositors of the bank in particular.
“Depositors of the bank who have alternate accounts within the industry will be paid up to the insured sum of N5 million per depositor after using their Bank Verification Number (BVN) to locate their other account. Depositors having money in excess of N5 million would receive a liquidation payout following the realisation of the bank’s assets and the recovery of debts owed to it. “Verification and Payment of Depositors Without Alternate Bank Account: All defunct bank depositors in the industry who do not have an alternate bank account are advised as follows:
“Visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s licence, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums, or file an online claim by visiting the NDIC website claims page on www.ndic.gov.ng/claims/claims, download and fill the claims forms (heritage bank).
Upload the “Verification and Payment of Creditors: Creditors are also advised to file their claims at the bank’s nearest branch or through the online platform.” Please be aware that the payment of creditors will begin immediately after all depositors have been reimbursed.
“Debtors’ Loan Repayment: Debtors who have yet to complete loan repayment should contact the Corporation’s Asset Management Department (AMD).” For further information, visit the NDIC’s website.
Heritage bank
“The NDIC wishes to reassure the whole banking public of its ongoing commitment to the safeguarding of depositor monies in all licenced banks. As a result, depositors are encouraged to continue their banking activities without concern, as banks with valid licences remain safe and sound.
Source: vanguardngr.com
