Hëritage Bank: Rëvocation of Licënse “Dëath Forëtold”- Moghalu; No Plan To Rëvoke More Licënses

Kingsley Moghalu, a former Deputy Governor of the Central Bank of Nigeria, says the revocation of the banking license of Heritage was long overdue.

The former presidential candidate made this know on his X handle on Tuesday two days after the CBN withdrew the operating license of the commercial bank.

The Yemi Cardoso-led bank had since directed that the depositors be paid insurance deposit with the NDIC.

According to the apex bank, in a statement issued by its acting Director, Corporate Communication Department, Sidi Ali, the new generation bank failed to improve its financial performance which posed a threat to financial stability.

Moghalu said the action of the CBN was in line in other to protect depositors’ funds domiciled with the now defunct bank, and to maintain confidence in the banking system.

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.”

Meanwhile, the CBN said has assured that it’s not planning to revoke the operating license of more commercial banks contrary to suggestion.

Below the statement issued by the CBN on the issue:

“The attention of the CBN has been drawn to some information circulating in the public domain, suggesting that the CBN is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday

“The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system.

“The Nigerian financial system remains safe, sound, and resilient.”