November 28, (THEWILL) – In keeping with its primary mandate of protecting depositors’ funds in registered financial institutions, the Nigeria Deposit Insurance Corporation, NDIC, has paid a cumulative sum of N113.2 billion to over 440,000 insured and uninsured depositors of banks in-liquidation as of June 2022.
This disclosure was made by the managing director/chief executive of NDIC, Mr Bello Hassan, in his keynote address at the opening ceremony of the on-going 19th edition of workshop for Business Editors and members of the Finance Correspondents Association of Nigeria (FICAN) holding at the Hotel Presidential, Port Harcourt, Rivers State.
Giving a breakdown of the payments, Bello explained that NDIC paid N11.83 billion to over 443,949 insured depositors and over N101.37 billion to uninsured depositors of all categories of banks in-liquidation.
Liquidation is the process of permanently closing a bank and its branches, selling off any assets and using the proceeds to settle as many of the bank’s remaining liabilities as possible. Typically, customer accounts are closed and checks are mailed to account holders for the amount of their insured deposits.
Mr Bello specified that the NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in-liquidation and that the liquidation activities, as at June 30, 2022, covered a total of 467 insured financial institutions in-liquidation, comprising of 49 deposit money banks (DMBs), 367 micro-finance banks (MFBs), and 51 primary mortgage banks (PMBs).
The NDIC boss further stated that the establishment had provided deposit insurance coverage to a total of 981 insured financial institutions as of June 30, 2022.
He said the breakdown includes: 33 DMBs made up of 24 commercial banks, six merchant banks and three non-interest banks (NIBs) plus two non-interest windows; 882 microfinance banks; 34 primary mortgage banks; three payment service banks and 29 mobile money operators.
To ensure faster and orderly resolution of liquidated banks, Bello said the Corporation has developed an instrument called Single Customer View (SCV) platform for micro and primary mortgage banks in order to strengthen their processes and procedure for data collections.
“In the area of scaling-up the deposit insurance framework and ensuring faster and orderly resolutions of liquidated insured institutions, in May this year, with the active participation of the relevant stakeholders, we had developed and deployed the Single Customer View (SCV) platform for the Microfinance and Primary Mortgage Banks in order to strengthen our processes and procedure for data collection.
“The platform would not only ensure availability of quality, timely and complete data to the NDIC, but would eliminate delays often experienced in reimbursing depositors following revocation of institutions’ licenses by the CBN.
“The final phase of the implementation of the SCV for Deposit Money Banks (DMBs) will be achieved through the incorporation of the SCV template as part of the on-going Integrated Regulatory Solution (IRS) jointly being developed with the CBN,” he said.
In the area of consumer protection, Mr Bello said the Corporation has strengthened its complaints resolution platforms, which include the Toll-Free Help Desk, social media handles and Complaints Desks in the Bank Examination, Special Insured Institutions and Claims Resolutions Departments, as well as our Zonal Offices, to receive and process complaints from depositors.
The three-day capacity building workshop with the theme, “Boosting Depositor’s Confidence Amidst Emerging Issues and Challenges in the Banking System”, will end on Wednesday, November 30.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
