BCAN Provides Details On Heritage Bank Customers’ Funds After CBN License Revocation

Customers of Heritage Bank have expressed fear in response to the Central Bank of Nigeria’s decision to revoke the bank’s operational license on Monday.

In an interview with DAILY POST, the President of the Bank Customers’ Association of Nigeria, (BCAN), Dr Uju Ogunbunka, expressed dismay that the development has plunged customers into a financial crisis.

Naija News earlier reported that the CBN, through its acting Director of Corporate Communications, Hakama Sidi Ali, issued a statement on Monday, expressing concern about Heritage Bank’s Board and Management’s failure to improve its financial performance, which is seen as a threat to financial stability.

Ali said “Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.”

In response to the revocation, Ogunbunka clarified that customers affected by the Heritage Bank revocation may not receive the full amount of their deposit.

“It will affect all customers, which means that there is no longer Heritage Bank.

“Anybody that has money in the money won’t be able to access their funds any longer, pending when NDIC will take over the bank according to the law.

“NDIC will decide what to refund back to Customers whether 100 percent or 50 percent of their deposit, that will be for them to decide.

“However, If the bank had money to continue, CBN wouldn’t have revoked their license. They have run aground whatsoever with the deposit they have. Unfortunately, this is not the best time for anybody to have a financial crisis,” Ogunbunka said.

HERITAGE Bank, formerly known as Societe Generale Bank (Nig.) Limited (SGBN), began operations in January 2013 following its licensing by the CBN in December 2012.