The Nigeria Deosit Insurance Corporation, NDIC,said yesterday it saved about N949.6 billion depositors’ funds in failed Skye Bank. Managing Director of the Corporation, Alhaji Umaru Ibrahim, disclosed this at the opening of a workshop for financial journalists organised by the NDIC in Benin, Edo State.
He said that 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.
He said that 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. The News Agency of Nigeria (NAN) recalls that NDIC sacked the board and management of Skye Bank on Sept. 22 and changed the management and renamed the bank as Polaris Bank, using bridge bank liquidation option.
over 6,000 jobs in 277 branches of the failed bank. The News Agency of Nigeria (NAN) recalls that NDIC sacked the board and management of Skye Bank on Sept. 22 and changed the management and renamed the bank as Polaris Bank, using bridge bank liquidation option.
Managing Director/Chief Executive, NDIC, Alhaji Umaru Ibrahim, disclosed this at the 2018 edition of the corporation’s workshop for business editors and finance correspondents in Benin, Edo State. Represented by the Director, Insurance and Surveillance Department, NDIC, Alhaji Yayaya Umar, Ibrahim also disclosed why the licences of the MfBs and PMA were revoked.
He said: “The CBN recently revoked the licences of 154 MFBs, and six Primary Mortgage Banks, PMBs, due to their insolvency. The affected institutions were closed because some were found to have insufficient assets to meet their liabilities, while others had their capital to risk-weighted assets ratio and regulatory capital below the minimum prescribed by the CBN.
“Quite a number of the banks had ceased to carry on the type of banking business for which their licences were issued for a continuous period of more than six months while others had gone into voluntary liquidation. “The NDIC has commenced verification of insured depositors and will soon start paying the verified claims to appropriate depositors in fulfilment of our core mandate.
“From the record obtained so far, majority of the depositors especially in the MFBs, have less than N200,000 in their accounts, which implies that the NDIC will hopefully cover 100 percent of the depositors. Umaru said: “Some of the emerging issues in the global financial services industry, Nigeria inclusive, included the proliferation of financial technology, FinTech, financial consumer protection, financial inclusion, digital and mobile banking and the evolution of digital currencies.
“Customer protection and financial inclusion as impacted by Fintech is now a global issue. Another issue worthy of mention is cybercrime resulting from the rapidly evolving complexities in technology.” “The changing landscape of the Nigerian financial sector brought to fruition the broadening dimension of Mobile Money Operators, MMOs, in Nigeria.”
