According to the Nigerian Deposit Insurance Corporation (NDIC), depositor payments at Heritage Bank would start in a week.
This was revealed by NDIC Managing Director Bello Hassan at a briefing on the bank’s liquidation on Wednesday in Abuja.
According to Hassan, Heritage Bank has approximately N700 billion in loans outstanding, while its total bank deposits are only N650 billion, as reported by Channelstv.
According to him, the NDIC anticipates guaranteeing the loan repayment in the upcoming six months.
The MD of the NDIC stated, “Depositors having insured deposits over N5 million naira will be paid following the sale of the bank’s assets, while all depositors are presently being validated for forward payment of insured benefit of five N5 million.
“According to the NDIC, the bank has N2.3 million total depositors, with 99 percent having total balances under five million naira.”
Around 116 heritage bank branches can be found all around the nation.
Customers of Heritage Bank who have been packing up after the bank’s license was revoked will have hope thanks to the NDIC’s assurance of payment.
The Central Bank of Nigeria (CBN) cancelled Heritage Bank’s banking license on Monday.
The action, according to the CBN, was taken in accordance with its authority under Section 12 of the Banks and Other Financial Act (BOFIA) 2020 and in furtherance of its mission to support a stable financial system in Nigeria.
In a statement, Appex Bank’s Ag. Director of Corporate Communications, Hakama Ali, claimed that the bank had violated BOFIA, 2020’s Section 12 (1).
The inability of the bank’s Board and Management to enhance the bank’s financial performance, according to Ali, poses a threat to the stability of the financial system.
It stated, “This comes after a time when the CBN spoke with the bank and suggested a number of supervisory actions meant to stop the downturn. Unfortunately, the bank has not improved and there are no realistic chances that it will, thus the next required step is to revoke the license.
As a result, the CBN stated that it took measures to bolster public trust in the banking sector and guarantee that the stability of the financial system is not compromised.
In accordance with Section 12(2) of the BOFIA, 2020, the apex bank subsequently designated the Nigeria Deposit Insurance Corporation (NDIC) as the bank’s liquidator.
