The Nigerian Deposit Insurance Corporation (NDIC) has taken steps to reassure depositors of Heritage Bank that it has initiated the process of payment to all depositors of the now-liquidated bank.
Speaking at a press briefing in Abuja, the Managing Director of NDIC, Bello Hassan, outlined the repayment procedures, emphasizing that the corporation is committed to settling customers within one week, contrary to the 30-day stipulation by law.
Hassan also disclosed some initial findings, stating that depositors’ funds were approximately N650 billion, while the bank’s loans amounted to around N700 billion.
The Central Bank of Nigeria (CBN) had recently revoked the operational license of Heritage Bank, citing the bank’s failure to enhance its financial performance.
“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,” the CBN stated.
Furthermore, the NDIC Boss revealed that “Among the 2.3 million depositors of the Bank, 99 per cent have deposits below N5 million, which is within the threshold insured by the NDIC for bank depositors.”
