Heritage Bank’s Collapse: It Was Chronicle Of A Death Foretold, Shouldn’t Worry Anyone- Moghalu

Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria, on Wednesday disclosed that the recent revocation of the baking license of Heritage Bank Plc by the Central Bank of Nigeria (CBN) as the chronicle of a death foretold and one which shouldn’t “worry” anyone.

In a series of posts on his X platform on Wednesday, Moghalu, a former presidential aspirant, said the apex bank’s action was to protect depositors’ funds, and maintain confidence in the banking system.

He added that the development was not surprising and does not mean that the financial system was not sound.

READ ALSO: Heritage Bank’s Collapse: CBN Debunks Planning To Withdraw Licenses Of Three Banks

“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,” he said in a statement on X.

“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,” he stated.

READ ALSO: CBN Revokes Heritage Bank License

To Moghalu, the Asset Management Corporation of Nigeria (AMCON) was established to ensure systemic financial stability and guard against banks failure.

“What we did in 2010 when we created AMCON 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,” he added.