Hassan provided an update on the liquidation process of Heritage Bank, mentioning that insured depositors have been largely reimbursed. However, depositors without alternative accounts or under post-no-debit (PND) orders are yet to be paid. The NDIC is focusing on recovering the bank’s assets to settle uninsured depositors through liquidation dividends. The success in paying insured deposits was facilitated by customers’ Bank Verification Numbers (BVN).He stated, “By using Bank Verification Numbers (BVN) as a unique identifier, we located depositors’ alternate accounts without the need for paperwork or office visits. This approach has facilitated the payment of 84.98% of depositors with BVN-linked accounts. The Corporation is dedicated to settling depositors with balances over N5 million through liquidation dividends from the defunct bank’s assets and debt recovery.”
The Managing Director mentioned that the Corporation has kickstarted the debt recovery and asset realization process of the collapsed bank. He also highlighted that NDIC’s responsibilities extend to the creditors of the defunct bank, ensuring payments after all depositors are fully reimbursed. This systematic approach, focusing on asset realization and claim priority, plays a crucial role in upholding public trust in the banking system and fostering financial stability.
“It’s evident from the Heritage Bank liquidation process that the NDIC plays a vital role in safeguarding depositors’ funds during financial upheavals. This reassurance is crucial for maintaining trust in the banking system even in challenging times,” he emphasized.
