The Nigeria Deposit Insurance Corporation (NDIC) has explained why some depositors of closed Heritage Bank Plc are yet to be paid their maximum insured coverage.
The Managing Director/ Chief Executive of NDIC, Mr. Bello Hassan, updated journalists yesterday in Lagos on the development at the ongoing NDIC Workshop for Finance Correspondents Assocation of Nigeria (FICAN) with the theme: “Strengthening Nigeria’s Financial Safety Net, The Role of NDIC.”
He explained that those who are yet to be paid had issues with their accounts, stressing, however, that that all depositors of the bank had been substantially paid.
According to.him, “the only group of insured depositors that we have not paid are those with no alternate accounts in other banks, and they have not come forward to also provide those alternate accounts so that we pay them.
“We have also not paid insured depositors whose account is on post-no-debit order either by order of court or regulatory agencies due to issues around fraud or KYC issues. “Once those orders are vacated, we are going to pay them.
Like I have said, since we have paid considerably all the insured amount, we are also making concerting efforts to make sure that we recover the assets, and the assets in terms of physical assets and the debts so that we can pay the uninsured depositors in form of what we call liquidation dividend, which has already commenced.”
The Corporation, in June 2024, began the payment of N5 million maximum insured coverage to the depositors of Heritage Bank following revocation of the bank’s licence by the Central Bank of Nigeria (CBN). “Our financial system continues to evolve and face new challenges, and the NDIC remains steadfast in its mission to protect depositors and collaborate with the Central Bank of Nigeria in ensuring the stability of the banking sector, which is critical to the growth and development of the economy.
“Our core mandate includes providing deposit insurers to cover depositors of licensed banks, supervising the insured financial institutions, resolving distressed banks and ensuring orderly resolution in the event of bank failure. Confidence is key in maintenance of the financial system’s stability, and the role of deposit insurers cannot be over-emphasised.
As one of the safety nets, it reassures depositors thereby instilling trust in the banking system and prevents bank frauds during times of uncertainty. “The recent closure of Heritage Bank following the revocation of its licence by CBN on June 3, 2024, underscored the NDIC’s critical role in safeguarding depositors.
Acting in accordance with the relevant provisions of the Banks and Other Financial Institutions Act 2020 and the NDIC Act of 2023, the NDIC was appointed to manage the orderly resolution of the bank and oversee the payment of depositors as well as other claimants,” he added.
New Telegraph
