NDIC: Heritage Bank customers to get their money in one week
Following the revocation of the licences of Heritage Bank Plc by the Central Bank of Nigeria (CBN), the Nigerian Deposit Insurance Corporation (NDIC) has assured depositors of the liquidated bank that it has commenced the payment process to all depositors.
The Managing Director of NDIC, Bello Hassan, who stated this at a press briefing in Abuja on Wednesday, outlined the repayment processes while insisting that the corporation would not take 30 days as stipulated by law but would settle customers within one week.
He said, “Preliminary findings show that depositors fund was about N650 billion while the Bank loans were around N700 billion.”
The CBN had on Monday revoked the operational licence of Heritage Bank due to the bank’s inability to improve 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 said.
The NDIC Boss further disclosed that “Among the 2.3 million depositors of the Bank, 99 per cent have deposits below N5million, which is within the threshold which the NDIC insures for bank depositors.”
The Informant247 had earlier reported how the Central Bank of Nigeria (CBN) had on Monday, with immediate effect, revoked the licence of Heritage Bank Plc.
According to Hakama Sidi Ali, Acting Director of Corporate Communication at the apex bank, in a statement issued, the action became necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.
She said: “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 revoking the licence the next necessary step.”
