NDIC SETTLES 85% OF DEPOSITORS OF DEFUNCT HERITAGE BANK
Overview:
The Nigeria Deposit Insurance Corporation (NDIC) has reported that approximately 84.98% of depositors from the defunct Heritage Bank have been compensated. This announcement was made by the NDIC Managing Director, Bello Hassan, during a workshop in Lagos.
Key Details:
1. Settlement Achievements: Bello Hassan confirmed that nearly 85% of depositors with BVN-linked accounts have been settled. The NDIC's innovative approach facilitated these prompt payments, which coincided with an increase in deposit insurance coverage from N500,000 to N5 million.
2. Economic Context: The increased deposit insurance significantly mitigated the adverse effects of the bank’s failure, particularly during the challenging economic climate.
3. Commitment to All Depositors: Hassan expressed the NDIC's commitment to settling depositors with balances exceeding N5 million, noting that these amounts constitute a significant portion of Heritage Bank's total deposits. The NDIC is actively working to ensure that these uninsured depositors receive their due amounts through liquidation dividends obtained from the bank's asset realizations and debt recovery.
4. Debt Recovery and Asset Realization:
The NDIC has initiated processes to recover debts and realize investments and physical assets of Heritage Bank, with the goal of ensuring timely payments to uninsured depositors. The NDIC will also address claims from creditors of the defunct bank after all depositors have been reimbursed.
5. Importance of Public Trust: Bello emphasized that maintaining an orderly process based on asset realization and priority of claims is vital for fostering public trust in the banking system and promoting financial stability. The handling of Heritage Bank's liquidation exemplifies the NDIC’s broader role in safeguarding depositor funds, even during financial disruptions.
6. Regulatory Framework: The NDIC chief highlighted that stringent regulations contribute to the stability of Nigeria's banking sector, asserting that bank failures are relatively rare due to these measures. He urged the media and civil society to continue their watchdog roles to help maintain a stable financial system.
7. Call to Action: Hassan stressed the importance of collaboration between the NDIC, the media, and civil society in advocating for the effective implementation of the deposit insurance system. He acknowledged that increased visibility of the NDIC's achievements reinforces public trust in Nigeria's banking system.
Overview:
The Nigeria Deposit Insurance Corporation (NDIC) has reported that approximately 84.98% of depositors from the defunct Heritage Bank have been compensated. This announcement was made by the NDIC Managing Director, Bello Hassan, during a workshop in Lagos.
Key Details:
1. Settlement Achievements: Bello Hassan confirmed that nearly 85% of depositors with BVN-linked accounts have been settled. The NDIC's innovative approach facilitated these prompt payments, which coincided with an increase in deposit insurance coverage from N500,000 to N5 million.
2. Economic Context: The increased deposit insurance significantly mitigated the adverse effects of the bank’s failure, particularly during the challenging economic climate.
3. Commitment to All Depositors: Hassan expressed the NDIC's commitment to settling depositors with balances exceeding N5 million, noting that these amounts constitute a significant portion of Heritage Bank's total deposits. The NDIC is actively working to ensure that these uninsured depositors receive their due amounts through liquidation dividends obtained from the bank's asset realizations and debt recovery.
4. Debt Recovery and Asset Realization:
The NDIC has initiated processes to recover debts and realize investments and physical assets of Heritage Bank, with the goal of ensuring timely payments to uninsured depositors. The NDIC will also address claims from creditors of the defunct bank after all depositors have been reimbursed.
5. Importance of Public Trust: Bello emphasized that maintaining an orderly process based on asset realization and priority of claims is vital for fostering public trust in the banking system and promoting financial stability. The handling of Heritage Bank's liquidation exemplifies the NDIC’s broader role in safeguarding depositor funds, even during financial disruptions.
6. Regulatory Framework: The NDIC chief highlighted that stringent regulations contribute to the stability of Nigeria's banking sector, asserting that bank failures are relatively rare due to these measures. He urged the media and civil society to continue their watchdog roles to help maintain a stable financial system.
7. Call to Action: Hassan stressed the importance of collaboration between the NDIC, the media, and civil society in advocating for the effective implementation of the deposit insurance system. He acknowledged that increased visibility of the NDIC's achievements reinforces public trust in Nigeria's banking system.