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The Central Bank of Nigeria has denied reports that Heritage Bank is under financial distress. Alluding to social media reports that the commercial bank is in distress, the apex bank, in a statement released today, refuted such claims.  

“We wish to state that Heritage Bank is not in distress and as such its depositors should go about their transactions without fear,” said Isaac Okorafor, the CBN’s Acting Director, Corporate Communications.

The banking regulator further stated that no Nigerian Bank is in distress, assuring depositors of the safety of their funds.

“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,” the Okorafor said.

The Nigerian economy slipped into a recession in the second quarter of 2016, with the banking sector particularly hit by high levels of Non-Performing Loans (NPL) ratios. The NPLs in the banking sector grew from 3.5% as of June 2014 to 11.7% at the end of June 2016. Despite the economic headwinds, the CBN said the banking system remains resilient enough to weather the current economic challenges.

The regulator also reiterated that it will remain alive to its responsibility of ensuring banking system stability and soundness through constant monitoring and supervision of all licenced institutions.