• Home
  • News
  • Politics
  • Business
  • Entertainment
  • Education
  • Health
  • Opinion
  • Sports
  • About
  • Advertise
  • Privacy Policy
Thursday, July 10, 2025
  • Login
No Result
View All Result
NEWSLETTER
Elanza News
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Education
  • Health
  • Opinion
  • Sports
  • About
  • Advertise
  • Privacy Policy
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Education
  • Health
  • Opinion
  • Sports
  • About
  • Advertise
  • Privacy Policy
No Result
View All Result
Elanza News
Home News

Revocation of Heritage Bank’s licence will stabilise financial system – experts

Nathaniel Irobi by Nathaniel Irobi
June 6, 2024
in News, Business, National
0
NDIC begins liquidation of Heritage Bank

Revocation of Heritage Bank’s licence will stabilise financial system – experts

0
SHARES
8
VIEWS
FacebookTwitterWhatsappEmailTelegram

Some financial experts have commnded the Central Bank of Nigeria (CBN) for its proactive action in revoking the operating licence of Heritage Bank Plc in order to save depositors’ funds.

The experts, who spoke with the News Agency of Nigeria (NAN), on Monday in Abuja, said that the action was in the overall interest of the financial system.

RelatedPosts

Presidency Responds to Mustapha: Tinubu’s Role in Buhari’s 2015 Win Undeniable

Senate Takes Decisive Action to Rescue Nigeria’s Power Sector

Senate to Investigate Rising Ponzi Schemes in Nigeria

According to Uche Uwaleke, a Professor of Finamce and Capital Market, and the president of Capital Market Academics of Nigeria, the revocation is a step in the right direction.

Uwaleke said that the proactive step by the CBN was in the overall interest of financial system stability.

He, however, said that efforts should be made to protect the depositors and employees of the liquidated bank.

“With the Nigeria Deposit Insurance Corporation (NDIC) taking over the liquidation process, efforts should be made to protect the depositors as well as interests of employees using liquidation dividends,” he said.

An economist, Dr Chijioke Ekechukwu, said that Heritage Bank had been struggling over the years to remain afloat, adding that the situation must have become irredeemable for the apex bank to revoke its licence.

According to Ekechukwu, a  past  president  of  the  Abuja  Chamber  of  Commerce  and  Industry, some years ago, some of us in the finance sector knew that the bank is struggling to remain afloat.

“For the CBN to revoke its licence, it means that it was irredeemable and probably not marketable to investors,” he said.

ALSO READ:  Power Outage Cripples Businesses in Kaduna State

He said that there would be an initial setback to all the bank’s customers because it would take a while to verify them for the purpose of compensation and refund of their monies by the NDIC.

“It is, however, better to sanitise the financial system than to allow a sick and weak bank to continue to open its doors to customers,” he said.

Mr Gregory Mmaduakolam, also an economist, said that the action by the CBN was rash and capable of eroding the much needed confidence in the banking system.

Mmaduakolam said that the action would also result in avoidable job loss of staff of the bank, thereby, further exacerbating the country’s unemployment challenge.

“I would have preferred a situation where the CBN supports ailing banks and prevent them from failing than simply withdrawing their licences.

“Such an action does not encourage confidence in the banking system, ” he said.

The News Agency of Nigeria (NAN) reports that the CBN had on Monday, announced revocation of the licence of of the bank witb immediate effect.

It said that the action was in accordance with the apex bank’s 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).

It said that the board and nanagement of the bank had not been able to improve the bank’s financial performance, a situation which constituted a threat to financial stability. (NAN)

Tags: financial systemHeritage Bank’sLicence
Nathaniel Irobi

Nathaniel Irobi

Related Posts

Tinubu urged to ignore calls for state of emergency in Zamfara

Presidency Responds to Mustapha: Tinubu’s Role in Buhari’s 2015 Win Undeniable

by Nathaniel Irobi
July 10, 2025
0

The Presidency has firmly rejected Boss Mustapha's claims that President Bola Tinubu was not vital to Muhammadu Buhari's 2015 electoral...

Senate shifts resumption to May 6

Senate Takes Decisive Action to Rescue Nigeria’s Power Sector

by Nathaniel Irobi
July 10, 2025
0

In a pivotal session, the Senate convened yesterday to discuss the Electricity Act (Amendment) Bill, 2025, a comprehensive legislative initiative...

Akpabio assures of speedy transmission of 2025 budget for Tinubu’s assent

Senate to Investigate Rising Ponzi Schemes in Nigeria

by Nathaniel Irobi
July 9, 2025
0

In a decisive move, the Nigerian Senate has mandated an investigation into Ponzi schemes and online payment platforms that defraud...

Recommended

Senate Yet to Obtain Court’s Ruling on Natasha’s Suspension Reversal — Adaramodu

Senate Yet to Obtain Court’s Ruling on Natasha’s Suspension Reversal — Adaramodu

4 days ago
Stakeholders Pledge Support For Gen. Gora

Stakeholders Pledge Support For Gen. Gora

5 days ago

Popular News

  • CDS’s Wife, Shehu Sani, Katung, Other’s To Storm Pastor Mutum’s Ordination, Book Launch

    CDS’s Wife, Shehu Sani, Katung, Other’s To Storm Pastor Mutum’s Ordination, Book Launch

    0 shares
    Share 0 Tweet 0
  • Bwari Council Chairmanship Aspirant, Dara, Dumps Labour Party Over Suspected Foul Play In Primaries

    0 shares
    Share 0 Tweet 0
  • Innoson, Ibeto, Apostle Alozie To Honour Archbishop Emma David At Golden Jubilee Celebration

    0 shares
    Share 0 Tweet 0
  • Kaduna Govt Unveils 345 Supervisory Councillors, Special Advisers Across 23 LGAs

    0 shares
    Share 0 Tweet 0
  • Bannon Tried to Use Iran Strike to Split the GOP Says Former Counselor to Jared Kushner, Eliyahu Okkon, Esq.

    0 shares
    Share 0 Tweet 0

Connect with us

Facebook Instagram Twitter Youtube
Elanza logo

Elanza News is your NO 1 online platform for all news update.
#SayNoToFakeNews
Contact Us

Category

  • Arts & Literature (25)
  • Business (737)
  • Education (217)
  • Entertainment (310)
  • Health (193)
  • National (2,168)
  • News (8,124)
  • Opinion (296)
  • Politics (1,620)
  • Science (15)
  • Security (405)
  • Sports (437)

Newsletter

© 2023 Elanza News - The No 1 online news platform

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Politics
  • Business
  • Science
  • National
  • Entertainment
  • Sports
  • Health

© 2023 Elanza News - The No 1 online news platform