The Nigeria Deposit Insurance Corporation, NDIC, weekend said as at December 2019, it had liquidated 425 financial institutions. The Liquidation took place between 1989 and 2019.
An Assistant Director, AD in the Insurance and Surveillance Department of the NDIC, Mr. John Abiodun, stated this at the Quarterly Forum of the Finance Correspondents Association of Nigeria (FICAN), in Abuja.
According to him, the liquidated institutions comprised 51 Deposit Money Banks, DMBs, 325 Micro Finance Banks, MFBs, and 51 Primary Mortgage Banks, PMBs. The AD spoke on, “Speedy Bank Failure Resolution Strategies: Challenges and Prospects.
” He said, “Through efficient and diligent liquidation activities, the Corporation has successfully paid in full the deposits of the Customers of 18 DMBs, (Both insured and uninsured) while payment to Depositors of Fortune International Bank, Triumph Bank and Peak Merchant Bank was put on hold as at end of 2019 due to litigation challenging the revocation of their operating licence.”
Mr. Abiodun lamented however, that in spite of the efforts of the corporation, bank failure resolution was faced with a myriad of challenges that needed to be urgently addressed.
“The effectiveness of the NDIC’s efforts in failure resolution had been impaired by a number of constraints and challenges which included: delays in revocation of the licenses of terminally distressed banks; depositor and creditor apathy and ignorance (delay in filing claims); recovery of debts owed the failed banks; “legal actions of owners of closed banks; protracted litigations; disposal of low quality physical assets of the closed banks and provision of timely liquidity support,” he said.