LAGOS, Nigeria (VOICE OF NAIJA)-In response to the Central Bank’s decision to revoke the licence of Heritage Bank, Economist Evans Osabuohien have suggested that the bank could have been better off acquired by another investor instead of having its operating license totally revoked by the apex bank.
Osabuohien, who heads the Department of Economics at Covenant University in Ota, Ogun, made this statement in an interview on Tuesday.
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The Central Bank of Nigeria (CBN) announced on Monday in Abuja the revocation of Heritage Bank’s operational license, attributing the decision to alleged threats to the country’s financial stability.
Economist Evans Osabuohien described the revocation as shocking, warning that it could result in job losses and increased tension among customers.
“CBN says that withdrawing the licence was the last option. If not, one would have expected a merger or acquisition, if only for the good of the economy,” he said.
The economist urged the CBN to re-strategize and strengthen its regulatory framework in the financial sector to prevent future crises in banks.