The Nigeria Deposit Insurance Corporation (NDIC), says it will begin payment of insured sum to 2.3 million depositors of Heritage Bank in-liquidation this week.
The Managing Director of NDIC, Mr Bello Hassan, said this while briefing newsmen in Abuja on Wednesday.
Hassan said the bank had preliminary deposits of N650 billion and loan worth N700 billion.
According to him, 99.9 per cent of depositors of the defunct bank have a deposit balance of less than five million naira, while only 4,000 of the depositors have more than five million naira deposit.
The Central Bank of Nigeria (CBN) had revoked the banking license of Heritage Bank.
The CBN, in a statement issued on Monday by the Acting Director, Corporate Communications Hakama Sidi said that the revocation has an immediate effect is to its mandate to promote a sound financial system in Nigeria.
“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.
“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.
“Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.”
The CBN noted that its action was also aimed at strengthening public confidence in the banking system and ensure that the soundness of the financial system is not impaired.
The CBN equally announced that the Nigeria Deposit Insurance Corporation (NDIC) is appointed as the Liquidator of the bank by Section 12 (2) of BOFIA, 2020.
“We wish to assure the public that the Nigerian financial system remains on a solid footing.
“The action we are taking today reflects our continued commitment to take all
necessary steps to ensure the safety and soundness of our financial system,” the CBN said.
NAN
