Depositors with balances over N5 million would receive their liquidation payouts, according to the NDICThe NDIC remains committed to protecting depositors from the adverse effects of bank collapsesIn unexpected times, the NDIC reduces the likelihood of bank runs and fosters trust in the banking sector
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The Nigeria Deposit Insurance Corporation (NDIC) said depositors with balances exceeding N5 million will also be paid from their liquidation dividends.
Uninsured deposits represent a significant portion of the total deposits in Heritage Bank. Photo Credit: banks
Source: Getty Images
The managing ddirector and chief executive, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan made this known on the occasion of NDIC’s special day at the ongoing 45th Kano International Trade Fair.
He said,
“Having largely reimbursed depositors their insured deposits, the corporation is committed to ensuring that depositors with balances exceeding N5 million are also paid the balance of their deposits. These uninsured deposits represent a significant portion of the total deposits in Heritage Bank.
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“In this regard, the corporation is already working assiduously to ensure that depositors with amounts in excess of the maximum insured amount of N5 million are paid through liquidation dividends from the realisation of the defunct bank’s assets and recovery of debts.
“Additionally, the NDIC’s responsibilities extend to the creditors of the defunct bank, who will receive payments after all depositors have been fully reimbursed. This orderly process, based on asset realisation and priority of claims, is essential in maintaining public trust in the banking system and promoting financial system stability.
“The corporation today, 4th December 2024 commenced sales of landed properties and chattels of the bank nationwide. This process, which is by competitive public auction, shall follow laid down extant public procurement guidelines aimed at ensuring transparency, fair competition and accountability to enable recovery of commensurate values from the exercise toward payment of liquidation dividend to the uninsured depositors.”
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According to the MD, by guaranteeing payment in the event of bank failures, the NDIC is still dedicated to shielding depositors from the negative consequences of bank failures.
The NDIC, a vital part of the financial safety net, gives depositors peace of mind regarding the security of their money, which promotes confidence in the banking system and lowers the possibility of bank runs in unpredictable times.
NDIC moves to Pay Customers
Henzodaily.ng reported that the Nigeria Deposit Insurance Corporation (NDIC) has announced that it has finished a statewide assets appraisal of the now-defunct Heritage Bank as part of ongoing efforts to compensate depositors following the bank’s collapse.
During NDIC’s special day at the Lagos International Trade Fair, Bello Hassan, the organization’s managing director and CEO, made this news.
According to BusineDay, Hassan underlined NDIC’s commitment to maintaining the stability of the banking sector, especially in the case of a bank failure.
Source: Henzodaily.ng