Another bank got their licence revoked

The Central Bank of Nigeria, CBN, Tuesay, said it has revoked the licence of Garu Microfinance Bank, a microfinance institution in Bauchi state.

According to the News Agency of Nigeria, a manager of the bank, Ibrahim Abubakar, confirmed the revocation in Bauchi, adding that the bank had been taken over by Nigeria Deposit Insurance Corporation, NDIC.

Abubakar said the microfinance bank was closed because it was facing liquidity problem, and also because shareholders of the bank had been unable to recapitalise it.

‎According to him, timing of the closure is inauspicious because they are currently paying pensioners and September salaries.

“All the same, the NDIC and the management are collecting forms from depositors to process their payment with designated banks across the state, to enable them receive their money,” he assured.

‎He said the microfinance bank had been operating for over 20 years in the state, adding that pensioners and other depositors had gotten used to the bank.

‎A senior staff of the Nigerian Deposit Insurance Corporation (NDIC), Bauchi office, who spoke on condition of anonymity, said the CBN approved the liquidation of the bank.

“The CBN has revoked the licence of Garu Micro Finance Bank Bauchi ,for its inability to meet up with the financial obligations guiding operations of micro finance banks,” he said.

‎According to him, as soon as the NDIC officially deems that a bank has failed and is unable to meet its credit obligations, it notifies customers and the public, that it has assumed the responsibilities of receiver.

“It closes the doors to the public and immediately starts working with the bank’s staff to bring the books of account up to date, and ultimately post all relevant entries to the bank’s general ledger.

‎”This liquidation process entails more than converting assets to cash. It also involves finding new ownership for the failed bank,” he said.

‎He however assured that the NDIC would determine the number of depositors, their individual deposits and work out modalities for refunding their money.

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