Customers of 20 liquidated banks fully refunded, says NDIC
N11.83b paid to depositors of insured financial institutions Corporation extend coverage to 981 financial service providers
THE Nigeria Deposit Insurance Corporation ( NDIC) said depositors of 20 liquidated deposit money banks ( DMBS) have been paid 100 per cent of their trapped funds as at September.
The Corporation also revealed that it successfully paid out N11.83 billion to 443,949 depositors of insured financial institutions in liquidation as at June 30.
Besides, it paid over N101.37 billion to uninsured depositors of all categories of banks in liquidation since its inception.
According to the NDIC, the liquidation activities cover a total of 467 insured financial Hassan said out of the 49 institutions, comprising 49 DMBS in liquidation, the DMBS, 367 microfinance banks Corporation in September, ( MFBS) and 51 primar y money declared 100 per cent liquidabanks ( PMBS). tion dividends in 20 of those
These come as the institutions. This means the Corporation has extended organisation had raised insurance coverage to 981 enough funds from the disposfinancial service providers, al of assets of the affected which cut across the entire banks to pay all their deposispectrum of the ecosystem. tors fully.
NDIC Managing Director, Bello Hassan disclosed that NDIC Hassan, disclosed this yesterhad in May, with the active parday while declaring open the ticipation of relevant stake2022 NDIC workshop for busiholders, developed and ness editors and members of deployed the Single Customer the Financial Correspondent View ( SCV) platform to Association of Nigeria ( FICAN) strengthen data collection on in Port Harcourt, Rivers State. MFBS and PMIS.
“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’ licences by the CBN. The final phase of the implementation of the SCV for DMBS will be achieved through the incorporation of the SCV template as part of the ongoing Integrated Regulatory Solution ( IRS) jointly being developed with the CBN.
“Also in the area of consumer protection, 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,” he said.
He noted that NDIC, at the end of the second quarter of the year, provided deposit insurance coverage to a total of 981 insured financial institutions. The breakdown comprises 33 DMBS, 882 MFBS, 34 PMBS, three payment service banks ( PSBS) and 29 mobile money operators.
The Corporation, he said, was determined to scale up the deposit insurance framework, provide timely support to insured institutions, ensure faster and orderly resolutions of liquidation and assist the Central Bank of Nigeria ( CBN) in promoting the stability of the banking system.
“Over time, we have embarked on a series of strategic initiatives to achieve our desired vision,” he said.
In a paper titled, ‘ Rising Ponzi Schemes and Investment Scams in Nigeria’’, NDIC Director of Research and Strategic Policy, Michael Oladele, described Ponzi schemes as a major risk to the economy and financial stability.