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Payment of Heritage Bank Depositors to Commence – NDIC

The Nigerian Deposit Insurance Corporation (NDIC) has assured that payment of depositors’ funds at Heritage Bank will begin before the end of the week.

NDIC’s Managing Director, Bello Hassan made the announcement in Abuja on Wednesday during a briefing on the bank’s liquidation.

Following the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank’s license on Monday, the NDIC took over the liquidation process.

According to Hassan, the bank’s total deposits stand at N650 billion, with a loan portfolio of over N700 billion. The NDIC aims to recover the loans within six months.

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Depositors with balances up to N5 million will receive insured benefits, while those with higher balances will be paid after the bank’s assets are sold.

Out of 2.3 million depositors, 99 per cent have balances less than N5 million.

The NDIC’s assurance brings hope to Heritage Bank customers who were concerned after the license revocation.

The CBN revoked the license due to the bank’s breach of Section 12 (1) of BOFIA, 2020, and its failure to improve financial performance despite supervisory measures.

NDIC reassured swift payment of depositors’ funds to maintain public confidence in the banking system.

 

 

 

 

 

 

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Written by Tapre Timine

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