The Managing Director and Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, has said that a total of N28.84 billion has so far been recovered from debtors of failed banks.
According to him, the recent recovery was N368. 43 million even as the Corporation had paid a total of N11.50 billion to depositors, creditors, shareholders and other stakeholders of closed financial institutions as at December 31 last year.
The NDIC boss, who was speaking at the Corporation’s Special Day at the ongoing 13th Abuja International Trade Fair, said that N21.85 billion had so far been realised from the sale of physical assets of closed banks as at 2017.
He 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.
Umar Ibrahim 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 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 in 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 that in a bid to ensure financial system stability in the country, the 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, 1,008 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 with 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 it’s assets and liabilities”.
“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.”
He reiterated the commitment of NDIC to complement the roles of other regulators and institutions to ensure that the soundness and stability required to support agro-based small and medium enterprises is provided.
He urged Nigerians to ensure that they banked their monies only with NDIC-certified financial institutions so as to safeguard such investments in the event of failure.
He added that the NDIC had gone from strength to strength in the implementation of its mandate in ensuring that the overriding public policy objectives for establishing an explicit Deposit Insurance System (DIS) in the country are fully realized.