New Telegraph

Experts Back CBN’s Revocation Of Heritage Bank’s Licence

Financial experts have expressed support for the Central Bank of Nigeria’s (CBN) revocation of the banking licence of Heritage Bank Plc. The experts, who stated this in chat with New Telegraph, noted that while the apex bank’s measure would be regarded as drastic in some quarters, it was aimed at ensuring financial system stability.

For instance, in his reaction, the President, Bank Customers Association of Nigeria (BCAN) and former Registrar, Chartered Institute of Bankers of Nigeria (CIBN), Dr. Uju Ogubunka, said he believed that the Heritage Bank’s situation must have been beyond redemption, thus leaving the CBN with no option but to revoke the financial institution’s lender.

He said: “The news of the revocation came to me as a surprise. But I assume that the regulators took the decision to liquidate the bank because they felt it was in a really bad situation. They must have given the bank’s board and management what they considered to be adequate time to stabilise the bank and decided to take action when they felt this was not yielding result.” On whether the revocation of Heritage Bank’s licence will not spark fears over the health of other banks, Ogubunka said that matters of the health of banks should not be the subject of speculation.

“The regulators are the only ones who can speak about the actual health of banks. They examine the banks regularly and I believe that they will do everything to ensure the survival of a bank. However, they may decide to revoke licence of the bank if they come to the conclusion that there is no other way of saving it,” he added.

On his part, finance analyst and professor of capital market, Uche Uwaleke, lauded the apex bank’s action, describing is as the right step in the right direction. “This proactive step by the CBN is in the overall interest of financial system stability. With the NDIC taking over the liquidation process, efforts should be made to protect the Depositors as well as interests of employees using liquidation dividends,” Uwaleke said.

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