The House of Representatives has pledged its commitment to engage with relevant stakeholders to ensure the safety of depositors’ funds with Heritage Bank, following the revocation of the bank’s operating licence by the Central Bank of Nigeria on Monday.
In a statement issued by its spokesman for the House, Akin Rotimi, the House said it was aware of the revocation of the license of Heritage Bank and the appointment of the Nigeria Deposit Insurance Corporation as the liquidators, in accordance with the provisions of the Banks and Other Financial Institutions Act.
“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, to thoroughly examine the circumstances surrounding this decision and the subsequent steps taken by the NDIC.”
“Our priority is to safeguard the interests of all depositors and maintain the stability of the financial system. 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.”
“We urge the CBN and NDIC to establish clear channels of communication to allay the fears of the public and prevent any loss of trust in our financial system. Effective public engagement is crucial to maintaining confidence during this period,” the statement read in part.
The statement quoted the Chairman, Committee on Banking Regulations, Mohammed El-Rufai as saying, “The committee 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.”
Similarly, the Chairman, Committee on Insurance and Actuarial Matters, Ahmed Jaha said, “We will work diligently to oversee that the NDIC executes its mandate effectively, ensuring the protection of depositors’ funds and maintaining confidence in the financial sector. The NDIC Act and the Banks and Other Financial Institutions Act are clear in their provisions that depositors’ funds are insured and protected.”
The lawmakers urged all depositors and stakeholders to remain calm and be assured of its dedication to protecting their interests.
CBN’s decision according to a statement issued by its Acting Director of Corporate Communication, Sidi Ali on Monday was taken due to Heritage Bank’s failure to improve its financial performance, thus, posing a threat to financial stability.
According to the apex bank, the money deposit bank has not been able to stem the decline despite various supervisory steps taken by the regulator. With no reasonable recovery prospects, the CBN decided to protect the financial system and maintain public confidence.