Heritage Bank is not distressed, says CBN

Heritage Bank is not distressed, says CBN

The Central Bank of Nigeria on Tuesday dismissed reports that
Heritage Bank was in distress and unable to discharge its
obligations to depositors.
The apex bank said in a statement issued by its Acting Director,
Corporate Communications Department, Mr. Isaac Okoroafor,
that Heritage Bank was not in distress.
The CBN called on depositors of Heritage Bank to disregard the
reports and continue doing business with the lender.
The statement read in part, “The attention of the CBN has been
drawn to false and malicious stories on the social media
insinuating that Heritage Bank is under financial distress and
therefore unable to discharge its obligations to its depositors.
“We wish to state that Heritage Bank is not in distress and, as
such, its depositors should go about their transactions without
fear. For the avoidance of doubt, we wish to further state that no
Nigerian bank is in distress.
“The CBN, as the industry regulator, has a duty to depositors, in
particular, and the economy in general, to ensure the soundness
of all financial institutions.
“We, therefore, wish to assure all depositors of the safety of their
deposits.”
The apex bank also said that it would continue to ensure the
soundness and safety of the Nigerian financial system.
Okoroafor added, “The CBN also wishes to state that it will
remain alive to its responsibility of ensuring banking system
stability and soundness through constant monitoring and
supervision of all licensed institutions.
“The CBN wishes to reiterate that the banking system remains
resilient enough to weather the current economic storm.”
In a related development, Heritage Bank on Tuesday night refuted
the claims of its inability to meet its obligations to customers.
The bank said while it acknowledged the challenging operating
environment currently being experienced in all sectors of the
economy, it remained financially stable and had continued to
discharge its obligations to all customers and stakeholders.
Heritage Bank’s statement read in part, “This position is
buttressed by the commendable results posted by the bank in the
past financial year and the last three quarters of 2016, resulting
in shareholders’ approvals to list its shares on the Nigerian Stock
Exchange within one year of its business combination with the
erstwhile Enterprise Bank Limited.
“The bank wishes to assure all customers and stakeholders of
the safety of their deposits and financial transactions in line with
our commitment to a strong service culture and sound corporate
governance practice.”
An online media outfit, Saharareporters , had on Monday reported
that Heritage Bank was currently stuck in a debilitating liquidity
situation.
It quoted sources as saying that the bank was unable to meet
customers’ immediate withdrawal requests and had wiped out all
foreign currency domiciliary accounts through physical theft of
cash by the bank’s directors.
It was further reported that First Bank Nigeria Limited, which
handles Heritage Bank’s universal clearing activities, had
threatened to blacklist the lender and stop further clearing
transactions if its outstanding deficit of over N5bn was not
cleared.
According to Saharareporters , out of about 500 Automated Teller
Machines of the bank in the Lagos metropolis, only 138 were
dispensing cash, adding that the bank lacked the money to feed
the other machines.
It reported that the bank’s situation was further worsened by
boardroom intrigues, tribal politics and ownership tussle.
The report claimed that the CBN Governor, Mr. Godwin Emefiele,
had ensured that these misdemeanours were kept hidden due to
political pressure by the owners of the bank, and because the
apex bank did not want to give the appearance of further distress
in the banking sector following the recent crisis at Skye Bank.