(read article at NigerianTribune.com)
Written by Odidison Omankhanlen Monday, 01 August 2011
Speaking at the NDIC 2011 examiners’ conference in Lagos at the weekend, the Managing Director/Chief Executive, NDIC, Alhaji Umaru Ibrahim, stated that the corporation had so far paid over half of the depositors of the MFBs that failed last year, adding that it was now partnering with Unity Bank and Intercontinental Bank to assist in verifying and paying the affected depositors.
“We have done a lot since December last year when we started paying them. It is an ongoing exercise but we had to stop. W went out three times to pay the depositors of the failed MFBs and I believe we have paid almost N4billion and we have paid more than 50 per cent of those depositors.
“We will continue to call on them to come forward and verify their claims and collect their insured deposits in the banks we are partnering with,” he said.
Alhaji Ibrahim allayed fears over the emerging mega status of some banks in the post recapitalisation of the rescued banks, stating that the regulators would ensure that the merged banks put relevant structures in place to avert any failure.
“Well, it might be true that in solving one problem, you may end up creating another problem. We just talked about the need to have a comprehensive framework to deal with issues concerning the sector.
“They have to be encouraged to have enough quality and quantity of capital to put up a robust risk management system and corporate governance such that they do not fail and if they have to fail, their failure will be settled in such a manner that it does not pose a threat to the entire financial system,” he declared.
Ibrahim further said that though the regulators were not involved in the preliminary merger plans of the banks, they would ensure that only those that meet the recommended criteria are granted the final approval.
