The Managing Director and Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, yesterday said N11.50 billion had been paid to depositors, creditors, shareholders and other stakeholders of closed financial institutions as at December 31, 2017.
He also said N368.43 million was recovered by the corporation from debtors of failed banks during the period under review- bringing total recoveries to N28.84 billion to date.
The NDIC boss further noted that N21.85 billion had so far been realised from sale of physical assets of closed banks as at 2017.
He also said depositors of 16 deposit money banks (DMBs) in-liquidation have so far been fully paid all the deposit balances they had in their accounts at the closure of the financial institutions as at 2017.
Speaking during the NDIC Special Day at the ongoing 13th Abuja International Trade Fair, Ibrahim further announced the successful conclusion of the adoption of bridge bank as a failure resolution option in 2011 by the corporation to address problems of the then three failing banks.
Represented by NDIC’s Director, Enterprise Risk Management Department, Mr. Peter Nggada, the NDIC boss noted that Keystone Bank Limited, the last of the three bridge banks to be sold, had been acquired by Sigma Golf River Bank Consortium on March 23, 2017, following the divestment of the Asset Management Company of Nigeria (AMCON).
The bridge bank transaction also had the then Mainstreet Bank Plc acquired by the defunct Skye Bank Plc, while Heritage Bank Plc had bought over Enterprise Bank.
He said in a bid to ensure financial system stability in the country, NDIC in partnership with the Central Bank of Nigeria (CBN) had conducted on-site and off-site supervision of 25 DMBs, one non-interest bank, 1008 microfinance banks (MFBs) and 38 primary mortgage banks (PMBs) using the Risk Based Examination of three banks with holding companies.
He added that as a risk minimiser, the corporation in collaboration of the CBN exists to protect depositors’ funds through effective supervision of banks as well as timely resolution of distressed financial institutions “like we saw in the case of the defunct Skye Bank and the establishment of Polaris Bank to assume its assets and liabilities.”
He pointed out however, “When various resolution measures fail, the corporation could, as the last option, liquidate the failed banks and ensure the prompt payment of all insured deposits.”