The Business NG - June 05, 2024

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"It is no longer news that the Central Bank of Nigeria (CBN) has revoked the Heritage Bank's operating license, marking a significant departure from the previous policy of rescuing struggling banks.

Today, we focus on the shift towards market discipline, prioritizing depositor protection and financial stability.

Under former governor Godwin Emefiele, the CBN consistently bailed out banks, creating moral hazard and allowing directors and shareholders to escape accountability.

In contrast, the current leadership has chosen to let Heritage Bank exit the market, emphasizing financial soundness and regulatory compliance.

This decision is expected to boost public confidence in the banking sector and encourage banks to adopt more stringent lending criteria and recover bad loans promptly. While it may cause anxiety among customers, this move signals a new era of accountability and prudence in the banking industry."