The CBN has revoked the licence of Heritage Bank Plc with immediate effect.

The CBN said the action became necessary due to the bank’s breach of Section 12 (1) of the Banks and Other Financial Act BOFIA, 2020.

The apex bank also said the board and management of the bank have not been able to improve the bank’s financial performance, which it noted to have constituted a threat to financial stability.

CBN’s spokesperson, Hakama Ali, in a statement on Monday, said the withdrawal of the bank’s operational licence is in accordance with the apex bank’s mandate to promote sound financial system in Nigeria, and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.

It noted that the CBN had 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,” Ali said.