The Nigerian Deposit Insurance Commission has commenced the liquidation process of failed Heritage Bank with verification and payment of the bank depositors.
LIB had reported that the Central Bank of Nigeria CBN on Monday, June 3, revoked the operation license of the bank and appointed the NDIC to liquidate the bank.
In a statement signed by the acting Director of Corporate Communication, Sidi Ali, the CBN said
“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.”
In its capacity as the liquidator of the bank, NDIC issued a statement signed by the Director, Communication & Public Affairs, Bashir Nuhu, where it revealed that depositors will be get up to N5m.
“Depositors of the bank that have an alternate account within the industry will be paid up to the insured amount of N5m per depositor using their Bank Verification Number to locate their alternate account. Depositors with funds in excess of N5m will be paid liquidation dividends upon realisation of the bank’s assets and recovery of debts owed to the bank.
Verification and Payment of Depositors Without Alternate Bank Account: All depositors of the defunct bank without alternate bank account in the industry are advised to visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s license, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number for the verification of their deposits and subsequent payment of insured sums or file an online claim on the NDIC website,” part of the NDIC statement read.
The corporation urged the bank’s creditors to visit the nearest branch of the bank to file their claims or via the online platform. It explained that the creditors would be paid after depositors, adding that the failed bank’s debtors, who were yet to complete the repayment of loans, were advised to do so.
Share this story to friends“The NDIC wishes to assure the entire banking public of its commitment to the continued safety of depositors’ funds in all licensed banks. As such, depositors are urged to continue their banking businesses without fear, as banks whose licences have not been revoked remain safe and sound,” NDIC concluded.
