“We assure the public, particularly depositors and stakeholders of Heritage Bank, that the House is committed to carrying out its constitutional oversight functions to ensure that this development does not negatively impact Nigerians” – House of Reps
Customers and shareholders of Heritage Bank Plc were thrown into a panic mode on Monday as the Central Bank of Nigeria (CBN) announced the revocation of the operating licence of the bank, effective immediately.
The National Assembly, through the spokesman of the House of Representatives has, however weigh in to douse the tension, assuring depositors of the safety of their funds.
The apex bank in a statement on Monday noted that the action became necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.
The apex bank further stressed that bank’s Board and Management have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.
The move by the CBN is in fulfillment of its core mandate to promote a sound financial system as enshrined in Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
CBN added that it engaged with the bank and prescribed various supervisory steps intended to stem the decline.
The CBN said, “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.”
Reacting to the announcement, the House of Representatives has assured depositors of the bank to remain calm, assuring them that their deposits are well protected.
According to the House spokesperson Akin Rotimi in a statement signed in Abuja, the House priority is to safeguard the interests of all depositors and maintain the stability of the financial system.
He said, “the House of Representatives is aware of the recent revocation of the license of Heritage Bank (under liquidation) by the Central Bank of Nigeria (CBN) and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the liquidators, in accordance with the provisions of the Banks and Other Financial Institutions Act (BOFIA).
“We assure the public, particularly depositors and stakeholders of Heritage Bank, that the House is committed to carrying out its constitutional oversight functions to ensure that this development does not negatively impact Nigerians.
“The relevant House Committees on Banking Regulations; and Insurance will be up to their duty, thoroughly examining the circumstances surrounding this decision and the subsequent steps taken by the NDIC.
“We will engage with the CBN, NDIC, and other relevant stakeholders to ensure a transparent and orderly resolution process, providing necessary support to mitigate any potential negative impact on the public.
“Chairman of the House Committee on Banking Regulations, Rep. Mohammed Bello El-Rufai, stated, “The Committee on Banking Regulations will closely monitor the liquidation process to ensure that the rights of depositors are protected and that the process adheres to the highest standards of transparency and accountability.”
