Moghalu also said the revocation should not worry Nigerians, adding that it doesn’t mean the financial system isn’t sound
By Kehinde Okeowo
Former presidential candidate of the Young Progressive Party (YPP), Kingsley Moghalu, has said the revocation of the operating license of Heritage Bank by the Central Bank of Nigeria (CBN) did not come to him as a surprise.
The ex-Deputy Governor of the CBN made this known on Wednesday via a post he shared on his X handle, where he described the revocation as the “chronicle of a death foretold”.
He went on to argue that, “a bank that is badly run should not have a lifetime guarantee”, adding that “the important thing is to protect depositors funds”
He further said the revocation of the license of the defunct bank should not worry anyone and that it doesn’t mean the financial system isn’t sound.
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Speaking via his social media page, Moghalu tweeted: “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.”
