NDIC Liquidates 500 Deposit Money And Microfinance Banks

NDIC Liquidates 500 Deposit Money And Microfinance Banks

The Central Bank of Nigeria had already terminated the licenses of liquidated deposit money, microfinance, and main mortgage institutions, according to the Nigeria Deposit Insurance Corporation.

The NDIC also stated that it was presently settling bank depositors’ liquidation dividends.

Galadima Gana, Director, NDIC Insurance and Surveillance Department, announced this during the 2021 Financial Correspondents Association of Nigeria workshop in Ibadan, Oyo State, Southwest Nigeria, on Friday.

Gana stated that the corporation has closed 325 MFBs, 50 PMBs, and 49 DMBs whose licences were revoked by the CBN with minimal effects on the stability and confidence in the banking sector.

According to him, the corporation has cumulatively paid N8.27 billion to insured depositors of DMBs, N3.38 billion to insured depositors of MFBs, and N11 billion to insured depositors of PMBs.

He added that the payment to uninsured depositors, creditors, and shareholders of DMBs cumulatively stood at N100.85 billion, N1.27 billion, and N4.83 billion, respectively.

On the side-lines of the event, the Managing Director of the NDIC, Bello Hassan also explained that the corporation was settling the liquidation dividends of depositors of the banks.

Hassan said ”One of our mandates is also to liquidate licence deposit institutions whose deposit has been revoked by the CBN. So you have various categories that are currently in liquidation, the Deposit Money Banks (DMBs), Micro Finance Banks (MFBs), and Primary Mortgage Banks (PMBs). As liquidator, what we do immediately there is (a) revocation of licence is to pay the maximum insured amount.”

After that, he stated that the corporation “proceeded to recover the loans and advances” granted by the liquidated institutions before revocation and “also realise the assets” left behind “so that we can pay it to the depositors.”

The Managing Director added that “We only pay the maximum insured amount at the point of liquidation then, subsequently, begin to pay depositors and after that, we wind up, but the payment is currently ongoing.”

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