The Nigeria Deposit Insurance Corporation, NDIC, has called on depositors, creditors and shareholders of 20 closed banks to collect their remaining funds in the banks.
Managing Director/ Chief Executive of the Corporation, Mr. Bello Hassan made this call while speaking at the NDIC Special Day at the ongoing Lagos International Trade Fair, adding that realised enough funds to fully pay all depositors of their remaining funds in the 20 closed banks.
The banks are ABC Merchant Bank Limited; Allied Bank of Nigeria; Alpha Merchant Bank Plc.; Amicable Bank of Nig. Limited; Commerce Bank; Commercial Trust Bank Limited; Continental Merchant Bank Plc; Cooperative & Commerce Bank Plc.; Eagle Bank; Financial Merchant Bank Limited; Icon Limited (Merchant Bank); Ivory Merchant Bank; Kapital Merchant Bank Limited; Mercantile Bank of Nig. Plc.; Merchant Bank of Africa Limited; Nigeria Merchant Bank Plc; Pan African Bank Limited; Premier Commercial Bank Limited; Progress Bank of Nigeria; and Rims Merchant Bank Limited.
Hassan added that similar notices were also sent to creditors of seven Deposit Money Banks, DMBs in-liquidation as well as depositors and ex-staff of Eurobank Savings & Loans, Okporo MFB and Eurofield MFB. Only yesterday, our staff commenced verification of depositors of Post Service Savings & Loans (in-liquidation) at the premises of the defunct bank nationwide in preparation towards settlement of their claims.”
“Therefore I’d like to once again call on depositors, creditors and shareholders of the listed closed banks to avail themselves of the verification platforms provided by the Corporation to claim their funds”, he added.
Hassan explained that NDIC participation in the Lagos International Trade Fair over the years, is to continuously sensitise the banking community and general public about the existence of the Deposit Insurance Scheme (DIS) and the measure of safety it offers to the financial system.
“This is important since public confidence in the financial system can only be enhanced when they are aware that their deposits are protected and that in the unlikely event of bank failure, there is an agency of government that would always safeguard their hard earned savings.
Highlighting the functions of the NDIC, Hassan said: “The Corporation protects depositors through the discharge of its mandate in four critical ways: by insuring depositors’ funds and guaranteeing payment in the event of bank failure; by supervising the banks in conjunction with the Central Bank of Nigeria (CBN) to ensure that they comply with extant laws and regulations; by resolving distress to reduce incidents of failure; and by ensuring orderly liquidation of failed banks to prevent disruptions to the payment system.
In the aspect of Deposit Guarantee, the NDIC has been highly responsive in providing coverage to all types of accounts and products as they evolve in our banking system. From depositors of Deposit Money Banks (DMBs) at inception, the Corporation has extended deposit insurance coverage to depositors of Primary Mortgage Banks (PMBS), Microfinance Banks (MFBs), Non-Interest Banks (NIBs), subscribers of Mobile Money Operators (MMOs) and the recently introduced Payment Service Banks (PSBs). The coverage limits have also been progressively reviewed upward in line with prevailing deposit structures and economic realities of the country.
“While depositors of DMBs, PMBs, NIBs, PSBs and subscribers of MMOs are currently insured up to maximum limit of N500,000 per depositor per bank, those of MFBs are guaranteed up to a maximum limit of N200,000 per depositor per bank.
“While the insured limits are periodically reviewed by the Board of the Corporation to ensure that the majority of depositors are covered, it is important to add that depositors who have balances in excess of the insured sums are regularly paid the excess as liquidation dividends, which often extends to creditors and shareholders of the banks.”
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