The Nigeria Deposit Insurance Corporation (NDIC) says it has liquidated at least 500 deposit money, microfinance, and primary mortgage banks whose licenses were revoked by the Central Bank of Nigeria (CBN).

The corporation also disclosed that it was currently settling the liquidation dividends of depositors of the banks.

Galadima Gana, the Director, Insurance and Surveillance Department of the NDIC, revealed this at the 2021 Financial Correspondents Association of Nigeria (FICAN) workshop on Friday in Ibadan.

According to Mr Gana, the corporation had closed 325 MFBs, 50 PMBs, and 49 DMBs whose licences were revoked by the CBN with minimal effects on the stability and confidence in the banking sector.

Mr Gana also mentioned that NDIC had cumulatively paid N8.27 billion to insured depositors of DMBs, N3.38 billion to insured depositors of MFBs, and N11 billion to insured depositors of PMBs.

He stated that the payment to uninsured depositors, creditors, and shareholders of DMBs cumulatively stood at N100.85 billion, N1.27 billion, and N4.83 billion, respectively.

He said this represented 51.07 per cent, 73.13 per cent and 92.81 per cent of the respective amounts.

https://www.reporterswall.com/cbn-license-revocation-ndic-shuts-down-500-deposit-money-microfinance-banks/

Mscheww…
Who will shutdown the BDCs run by cabals that get raw dollars from CBN on a weekly basis

This is worthy of note. This implies that, most banks deposits are guaranteed even if a bank goes under. As long as all regulatory and insurance requirements are religiously kept. Depositors funds are secured. God bless professor Charles Soludo for initiating the banking reforms.

yemobrown:
This is worthy of note. This implies that, most banks deposits are guaranteed even if a bank goes under. As long as all regulatory and insurance requirements are religiously kept. Depositors funds are secured. God bless professor Charles Soludo for initiating the banking reforms.

That's not true. Depositors funds are only insured by NDIC to the tune of ₦500k. Whatever you have above ₦500k is gone.

Can you imagine that 500 MFBs were liquidated, and all depositors funds amount to a mere ₦100b?. MFBs were created by Obasanjo to help SMEs secure micro loans. Now that 500 MFBs are gone, what's the fate of the SMEs. Emefiele is the most wicked, useless and incompetent governor CBN ever had.