The NDIC will auction the assets of failed banks and reimburse clients.

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Following the Central Bank of Nigeria’s cancellation of licenses for 179 microfinance institutions and four Primary Mortgage institutions, the Nigeria Deposit Insurance Corporation has assured depositors of the closed banks of prompt payment of their insured funds.

Mr Bello Hassan, Managing Director/Chief Executive of the NDIC, provided this guarantee in a statement following the revocation of licenses of the affected MFBs and PMBs by the Governor of the Central Bank of Nigeria, Mr Godwin Emefiele.

The NDIC chief added in a statement signed by the Director, Communication & Public Affairs Department, NDIC, Bashir Nuhu, that the covered deposit was the first claim that the corporation paid to depositors following the CBN’s cancellation of the bank’s licence. He went on to say that the maximum defined limitations for the MFB and PMB sub-sectors are N200,000 and N500,000 per depositor per bank, respectively.

“He assured that regulatory authorities were leaving no stone unturned to ensure that the soundness of the banking system was not compromised, and that there was no need for the public to panic over the safety of their bank deposits.

Hassan said, as deposit insurer, the NDIC would begin the process of payment of the insured sums immediately with the verification of eligible depositors at the respective premises of the closed banks.


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