Failed Banks: NDIC to commence claims payment of depositors

Umaru Ibrahim, the Managing Director of Nigeria Deposit Insurance Corporation (NDIC), has assured that the corporation would soon commence claims payment to depositors of failed microfinance banks and primary mortgage banks.

The NDIC boss made this known during the ongoing 2018 Lagos International Trade Fair.

Ibrahim said, “The NDIC has commenced verification of insured depositors and will soon start paying the verified claims to appropriate depositors in fulfilment of our core mandate. From the record obtained so far, the majority of the depositors, especially in the MFBs, have less than N200,000 in their accounts, which implied that the NDIC will hopefully cover 100 per cent of the deposited funds in the MFBs.”

It was  reported that the Central Bank of Nigeria (CBN) hammer may fall on some finance houses in Nigeria.

In a release made available to the public, the apex bank had made known its intention to revoke the operating licenses of 182 financial institutions operating in the country.

CBN announced this barely a week after its revoke Skye Bank’s operating license. The 182 financial institutions which according to the apex bank, cut across different states of the country include – 154 microfinance banks; 6 primary mortgage banks, and 22 finance companies.

CBN said 62 of the microfinance banks had already closed shops; 74 became insolvent; 12 were terminally distressed; while six voluntarily liquidated.

The CBN listed the primary mortgage banks for revocation as Accord Savings and Loans Limited in Lagos that failed to recapitalise; and Ahocol Savings and Loans Limited in Anambra (state government-owned) that closed shop.

Other mortgage banks for revocation are Trans Atlantic Savings and Loans Limited in Bayelsa (state government-owned) that became insolvent; Royal Savings and Loans Limited in Delta State that also closed shop; Amex Savings and Loans Limited in Lagos that failed to recapitalise; and Supreme Savings and Loans Limited also in Lagos that closed shop.

The CBN disclosed that eight finance companies voluntary liquidated; 13 failed to recapitalise; while one became insolvent.

 

Source: Nairametrics

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