Heritage: CBN denies reports of more bank license revocations

Leah TwakiJune 5, 20242 min

The apex bank said reports trailing the revocation of the license of Heritage bank were untrue and assured that the Nigerian financial system remains safe, sound and resilient

Heritage bank licence revoked
Heritage bank licence revoked

The Central Bank of Nigeria (CBN) has dismissed reports suggesting a plan to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday, June 3, 2024.

Acting Director of Corporate Communications of the apex bank, Mrs. Hakama Sidi-Ali, revealed this in a statement on Tuesday in Abuja.

Sidi-Ali described the allegation of plans to revoke the licences of Unity, Keystone, and Polaris banks as,”false and intended to trigger panic in the financial system.” The apex bank assured the public that the Nigerian financial system remains “safe, sound, and resilient.”

The CBN highlighted the ongoing banking sector recapitalisation programme, which requires Commercial, Merchant, and Non-Interest Banks (CMNIBs) to submit implementation plans for meeting new minimum capital requirements.

These plans are under review by the CBN, with the aim of enhancing the financial system’s resilience against economic shocks, the statement said.

“This proactive measure will result in increased capital for Nigeria’s banks, enabling them to provide much-needed credit to critical sectors of the economy. This will increase the financial system’s contribution to the growth and development of a $1 trillion Nigerian economy,” the statement said.

Reassuring stakeholders, the CBN reiterated its unwavering commitment to maintaining the stability and soundness of the financial system.

“Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to ensure its safety and soundness,” the statement added

OrderPaper recalls that CBN revoked Heritage Bank Plc license on Monday, an exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020 stating that the Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

Leah Twaki

A Chemistry graduate, excels as a social media manager, digital journalist, and content creator with an interdisciplinary skills blend of science and communication.

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