Heritage Bank: Revocation of license by CBN wasn’t surprising – Moghalu

Heritage Bank: Revocation of license by CBN wasn’t surprising – Moghalu

 

Former Deputy Governor of the Central Bank of Nigeria, CBN,
Kingsley Moghalu, has described the recent revocation of the banking license of
Heritage Bank by the apex 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.”

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