NDIC assures depositors of failed bank speedy payment of insured sums

The Nigeria Deposit Insurance Corporation (NDIC) has assured depositors of banks in-liquidation of speedy and prompt payment of their insured sums in the event of banks’ failure.

Mr Daniel Udechukwu, the Deputy Director, Bank Examination Department of the Corporation, gave the assurance at the NDIC-Financial Correspondents Association of Nigeria (FICAN) workshop in Owerri on Wednesday.

Udechukwu said the corporation had exhibited this speed in the payment of depositors of some micro-finance banks currently in-liquidation.

According to him, recent development have demanded for more tactical approaches for distress resolution and the corporation is working to meet international standards.

”When some of these micro-finance banks went into liquidation, NDIC swung into action.

”For some of the areas, I monitored, I told the depositors that NDIC will pay them their insured sums soon but they did not believe.

”Within one to two weeks after our visit, they started receiving credit alert of their money. They inturn started calling us to thank the NDIC.

”The media have a role to play in telling these depositors that NDIC has changed. Our word is our bond.

”NDIC is no longer the old one, things have really changed,” he said.

Udechukwu listed some bank resolution options used by regulatory authorities to include purchase and assumption, liquidation, deposit transfer, bridge bank, merger and acquisition, among others.

The lecture is with title, ‘Recent Developments in Bank Distress Resolution: Lessons for Nigeria’.

Mr Imade Uhunmwagho, the Director, Information Technology Department of NDIC, said that with the aid of technology, the corporation was able to pay insured sums to the depositors of the Micro Finance Banks (MFBs) within seven days. (NAN)(www.nannews.ng)

GINI/EBI/AWA