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NDIC To Begin Payment To Heritage Bank’s Depositors One Week – MD

The Central Bank of Nigeria(CBN) on June 4 revoked the operating licence of Heritage Bank



NDIC Calls For Buyers As It Auctions Heritage Bank’s Head Office, Other Branches, Assets

The Nigerian Deposit Insurance Corporation (NDIC) has asked depositors of Heritage Bank to be rest assured as the repayment process has begun.

Bello Hassan, the Managing Director of NDIC, said this at an ongoing briefing in Abuja on Wednesday.

Hassan rolled out the processes of repayment, insisting that the corporation would not take 30 days as stipulated by law but would settle customers within one week.

News About Nigeria reported that the Central Bank of Nigeria(CBN) on June 4 revoked the operating licence of Heritage Bank.

The statement reads: “The Central Bank of Nigeria, CBN, in accordance with its mandate to promote a sound financial system 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 has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.

“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.

“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 license the next necessary step.

“Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.

“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance 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.”

However, the apex said Heritage Bank had not improved and “has no reasonable prospects of recovery”, thereby making revoking the licence the next necessary step.