CEM REPORT, BANKING| The recent revocation of the licence of Heritage Bank has stirred up fear and debate among the banking citizens of the country. With many harbouring the thought that the Nigerian banking might be at the verge of failing, the Chartered Institute of Bankers of Nigeria (CIBN) has reassured that the banking industry is safe and consumers interest are well protected.
In a recent statement made available to CEM, the institute revealed that information circulating on the Central Bank of Nigeria (CBN) revoking licences of more banks is “false and misleading”.
CIBN, added that the ongoing recapitalization process by the CBN is aimed at further strengthening the resilience of the Nigerian banks and their capacity to support the envisaged growth of the Nigerian economy.
The statement reads;
The Chartered Institute of Bankers of Nigeria (CIBN) would like to reassure the public that the Nigerian banking system remains very safe, sound and resilient. This is on the heels of mendacious information making rounds in the public domain that the banking licenses of more banks would be revoked after the regulatory action taken by the Central Bank of Nigeria (CBN) against Heritage Bank Plc on June 3, 2024.
We would like to allay the fears of bank customers and the generality of the public that the assertion is false and misleading. The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have debunked the claim. The ongoing recapitalization process announced by the CBN is also aimed at further strengthening the resilience of the Nigerian banks and their capacity to support the envisaged growth of the Nigerian economy.
Consequently, we urge the public to continue to conduct their banking services without hesitation or apprehension.
The CIBN, as the umbrella professional body for banks and bankers in Nigeria, working with other stakeholders in the ecosystem is committed to promoting best practices and ensuring that our banking sector remains safe and sound.
Recall that the CBN revoked the licence of Heritage Bank citing the bank’s failure to improve its financial health, making it a potential threat to the stability of the financial sector.
With no viable path to improvement, the CBN deemed revoking the license the only course of action to safeguard public confidence and maintain the overall health of the financial system.
The CBN appointed the Nigeria Deposit Insurance Corporation (NDIC) as the official liquidator for Heritage Bank. The NDIC’s role will be to oversee the orderly closure of the bank and ensure a smooth claims process for depositors
