Commencement of Liquidation
The Nigerian Deposit Insurance Commission (NDIC) has initiated the liquidation process for the failed Heritage Bank. This follows the Central Bank of Nigeria (CBN) revoking the bank’s licence and appointing NDIC as the liquidator. The verification and payment to depositors have begun, ensuring the protection of their funds.
Reason for Licence Revocation
The CBN revoked the licence because the bank breached Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020. The bank’s inability to improve its financial performance despite various supervisory measures posed a significant threat to financial stability. Consequently, the CBN had no choice but to take this decisive action.
NDIC’s Assurance and Actions
NDIC, acting as the liquidator, has assured depositors that they will receive up to N5 million per depositor. They will facilitate this by using their Bank Verification Number to locate alternate accounts within the banking industry. Depositors with funds exceeding N5 million will receive liquidation dividends after the realisation of the bank’s assets and recovery of debts owed to the bank.
Verification Process for Depositors
Depositors without alternate bank accounts are advised to visit the nearest branch of Heritage Bank. They need to provide proof of account ownership, a verifiable means of identification, and their Bank Verification Number for verification and subsequent payment of insured sums. Alternatively, they can file a claim online on the NDIC website.
Creditors and Debtors
The NDIC has urged the bank’s creditors to file their claims either at the nearest branch or through the online platform. The NDIC will pay creditors after depositors. Additionally, they encourage the bank’s debtors to complete their loan repayments promptly.
Assurance to the Public
The NDIC has reassured the banking public of its commitment to the safety of depositors’ funds in all licensed banks. They emphasised that depositors should continue their banking activities without fear, as banks with active licences remain safe and sound.
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