Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu has reacted to the recent revocation of the banking license of Heritage Bank by the Central Bank of Nigeria (CBN).

Moghalu described the development as the chronicle of a death foretold, adding that the situation was not surprising.

Moghalu shared his thoughts via a post on his X handle on Wednesday.

He insisted that that the defunct bank should not worry anyone, adding that it doesn’t mean the financial system isn’t sound.

Moghalu 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.”