Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has weighed in on the recent revocation of Heritage Bank’s license by the CBN. Describing the situation as “the chronicle of a death foretold,” Moghalu expressed that this outcome was expected.
In a post on his X handle on Wednesday, Moghalu emphasized that the closure of Heritage Bank should not cause alarm or suggest instability in the financial system. He stated, “The revocation of Heritage Bank’s license by the CBN is not surprising. It shouldn’t worry anyone, nor does it indicate that our financial system isn’t sound. Banks are businesses, albeit highly regulated ones. A poorly managed bank should not be guaranteed a lifetime of operation. Protecting depositors’ funds is what truly matters.”
Reflecting on his tenure, Moghalu added, “In 2010, when we established AMCON, our goal was to ensure systemic financial stability. During the global financial crisis, we made sure no bank failed to maintain overall stability. However, in the long run, it’s not sustainable to prop up any bank regardless of how poorly it is managed. That approach to financial regulation is flawed.”
Moghalu’s comments underscore the importance of responsible bank management and the need for robust financial regulations to protect depositors and maintain a stable financial system.
