Thursday, December 4, 2014

NDIC recovers N25bn from liquidated bank debtors

                                                                  


     The Nigerian Deposit Insurance Corporation said it recovered a sum of N25.31bn from debtors of liquidated banks as of December 2013.The figure represents an increase of N630m over the amount of N24.68bn which was recovered as of December 2012.
    Similarly, it said a total of N60.02m was realized from debtors of closed microfinance banks in 2013, as against N42.9m recovered in 2012.The corporation in its 2013 annual report and statement of account for the banking sector said the amounts were recovered as part of its resolution mechanism following the failure of the liquidated banks.The report, a copy of which was made available to our correspondent, was jointly signed by the NDIC Board Chairman, Dr. Hassan Adamu, and the Managing Director, Alhaji Umaru Ibrahim.
     It said the corporation had in the year under review improved on its supervisory activities in order to protect depositors by ensuring that ‘unsafe and unsound’ banking practices were minimized.This, it stated, was done through on-site examination and off-site surveillance.The on-site surveillance, it noted, was done through routine, special, target examinations and investigations.
     This, the report stated, had helped the corporation realize a sum of N19.77bn from the disposal of physical assets of closed banks in 2013 as against N19.74bn in 2012.Similarly, it said the sum of N173.3m was realized from the disposal of physical assets of closed banks in 2013 as against N157.12m in 2012.It said, “The NDIC continued to play its role as the liquidator of closed insured institutions through asset realization and payment of liquidation dividends to uninsured depositors and other eligible claimants during the year under review.“In terms of asset realization, the NDIC recovered a cumulative sum of N25.31bn from debtors of the DMBs in liquidation at the end of 2013 as against N24.68bm recovered in 2012.“Similarly, a total cumulative recovery of N60.02m was realized from debtors of closed MFBs in 2013 as against N42.9m realized in 2012, representing an increase of N17.12m or 39.91 per cent.”
     The report put the total number of closed DMBs in liquidation for which the NDIC had obtained winding up orders as of December 31, 2013 at 45.Some of them are Financial Merchant Bank Limited, Kapital Merchant Bank, Alpha Merchant Bank, United Commercial Bank, Abacus Merchant Bank, Allied Bank, Century Merchant Bank, Commerce Bank Plc, Continental Merchant Bank Plc, and Crown Merchant Bank.Similarly, out of the 103 MFBs whose licenses were revoked by the CBN in September 2010, the report stated that the NDIC had successfully closed 95 while the locations of eight could not be traced as of December 31, 2013.In the same vein, out of the 23 Primary Mortgage Banks whose licences were revoked in August 2012, only five were located while 18 had yet to be located for closure as of end of last year, it stated.Via.punch

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