We liquidate 500 deposit money, microfinance banks, says NDIC

FINANCE

The Nigeria Deposit Insurance Corporation (NDIC) said that it had liquidated no fewer than 500 deposit money, microfinance, and primary mortgage banks whose licences were revoked by the Central Bank of Nigeria (CBN).

Galadima Gana, the Director, Insurance and Surveillance Department of the NDIC, made this known at the 2021 Financial Correspondents Association of Nigeria workshop on Friday in Ibadan.

Gana also disclosed that the corporation was currently settling the liquidation dividends of depositors of the banks.

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According to him, the corporation had 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.

Gana noted that the NDIC had 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 stated 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, saying that represented 51.07 per cent, 73.13 per cent and 92.81 per cent of the respective amounts.

Also speaking, Bello Hassan, Managing Director of the NDIC, explained on the sidelines of the event 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Hassan said: ”One of our mandates is also to liquidate licence deposit institutions whose deposit has been revoked by the CBN.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. the corporation “proceeded to recover the loans and advan ces” granted by the liquidated institutions before revocation and “also realise the assets” left behind “so that we can pay it to the depositors.

“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.”