NDIC saved ₦949 billion depositors’ funds in failed Skye Bank – MD

The Nigeria Deposit Insurance Corporation (NDIC) said it saved about ₦949.6 billion depositors’ funds in failed Skye Bank.

Its Managing Directors, Alhaji Umaru Ibrahim, disclosed this in Benin City on Tuesday at the opening of a workshop for financial journalists organised by NDIC.

He said the saving was achieved through the adoption of bridge bank option, adding that the corporation also saved over 6,000 jobs in 277 branches of the failed bank.

Ibrahim, who was represented by a director in the corporation, Mr. Mohammed Umar, said the bridge bank liquidation option was less disruptive to rendition of services unlike outright liquidation.

“With the bridge bank option, the depositors of the defunct Skye Bank Plc are guaranteed access to their total deposits.”

He said that all those who contributed to the failure of the bank were being investigated by relevant law enforcement agencies to determine their levels of culpability.

Ibrahim said the revocation of banking licence of defunct Skye Bank and establishment of a bridge bank was done entirely by NDIC and not the Central Bank of Nigeria (CBN) as reported by the media.

“It is important to stress that while the roles of CBN and NDIC complement each other, a clear distinction exists in their roles in the handling of failed or failing financial institution.”

He said that CBN recently revoked the licenses of 154 microfinance banks and six primary mortgage banks due to insolvency.

Ibrahim stated that the affected institutions were closed because some were found to have insufficient assets to meet their liabilities. Others, he said, had their capital to risk-weighted assets ratio and regulatory capital below the prescribed minimum by CBN.

He said that a number of banks had ceased to carry on with the type of banking business for which licences were issued, while others had gone into voluntary liquidation.

Ibrahim said that NDIC had started verification of insured deposits of customers and would start paying the verified claims to appropriate depositors in the liquidated institutions.

He promised that NDIC, in collaboration with all relevant key players in the financial system, would continue to work on several initiatives to accelerate financial literacy and financial inclusion, especially among rural communities.

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