HERITAGE BANK: REVOCATION OF LICENSE BY CBN WASN’T SURPRISING – EX-CBN DEPUTY GOV, MOGHALU

June 5, 2024June 5, 2024

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Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria (CBN), has referred to the recent revocation of Heritage Bank’s operating license by the top bank as the chronicle of a death foretold.

Moghalu said the development wasn’t surprising.

In a post on his X handle on Wednesday, Moghalu said the revocation of the license of the defunct bank should not worry anyone, adding that it doesn’t mean the financial system isn’t sound.

He said: “The revocation of the banking license of Heritage Bank by @cenbank is the chronicle of a death foretold. In other words, it’s not surprising.

“I don’t think it should worry anyone, nor does it mean the financial system isn’t sound. Banks are businesses, even if very special and thus heavily regulated ones. A bank that is badly run should not have a lifetime guarantee. The important thing is to protect depositors’ funds.

“What we did in 2010 when we created @AmconNg was to ensure SYSTEMIC financial stability. We made sure no bank failed then to ensure systemic stability because of the unique situation of the global financial crisis. But over the long term, I never subscribed to a view that no bank, no matter how badly run, should ever fail. That would be a wrong approach to financial regulation.”