NDIC pays off 500,000 depositors of 17 liquidated banks

NDIC pays off 500,000 depositors of 17 liquidated banks

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 The Nigeria Deposit Insurance Corporation said it has paid off 526,414 depositors of liquidated banks.

Speaking at the weekend during a press conference to commemorate the 30th anniversary of the Corporation in Abuja, the Managing Director of the NDIC, Alhaji Umaru Ibrahim, also said all the depositors of the 17 defunct banks who came forward to file their claims had been paid all their money previously trapped in those banks.

He said N29.52 billion had been recovered from the debtors of the liquidated banks, noting that of this amount, N29.11 billion was recovered from debtors of the Deposit Money Banks, DMBs, in-liquidation, while N129.10 million was realized from debtors of failed microfinance banks, MFBs.

He said the balance of N300m was recovered from debtors of failed Primary Mortgage Banks, PMBs.

Ibrahim said the corporation would continue to ensure that depositors of liquidated banks suffered little loss or pain.

He said from 1994 to date, 53 DMBs, 325 MFBs and 51 PMBs were put under liquidation without disruption to the nation’s payment system.

In terms of recovery of assets, Ibrahim said N21.5bn was collected from the disposal of physical assets of closed DMBs; while N404.74 million and N78.17 million had been realized from the MFBs and the PMBs, respectively.

He said debt collection and assets sales culminated in the payments of over N116.25 billon as liquidation dividend to depositors, creditors and shareholders of closed DMBs, MFBs and PMBs.

He said, “It is important to stress that through sustained and diligent liquidation activities, the NDIC has realized assets to pay in full, deposits of the customers of 17 of the DMBs in-liquidation.

He described the banking system as upwardly dynamic, sophisticated and complex, adding that the dynamism and complexity in the last three decades had resulted in the emergence of different operational models, products and services.

He said such developments challenged the corporation’s capacity to protect depositors in its role as a key member of the Nigerian financial safety net.

The MD/CEO of NDIC also revealed that a total of N1.759 trillion of depositors funds have been protected by the bridge bank initiative till date in collaboration with the Central Bank of Nigeria (CBN).

It explained that in the discharge of its statutory role, it adopted the Bridge Bank mechanism to resolve the failure of three (3) Deposit Money Banks (DMBs) namely – Afribank, Spring Bank and Bank PHB in 2011. Similarly, in 2018, that mechanism was used to resolve the failure of Skye Bank Plc.

According to him, “It should interest you to note that the bridge bank initiative safeguarded 12,667 jobs, protected deposit liabilities of over N1.759 trillion which ensured that depositors had uninterrupted access to their funds, and prevented the systemic repercussions of the failure of the bank on the entire financial system.”

Online Editor

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