By Sunday Etuka, Abuja
Renowned Professor of Banking and Finance at the Nasarawa State University, Uche Uwaleke has applauded the Central Bank of Nigeria (CBN) for revoking the license of Heritage Bank.
Prof. Uwaleke in a Chart with TheFact Daily on Monday said, the proactive step by the CBN was in the overall interest of financial system stability.
Uwaleke who is also the President of the Association of Capital Market Academics of Nigeria (ACMAN) noted that with the NDIC taking over the liquidation process, efforts should be made to protect the Depositors as well as interests of employees using liquidation dividends.
“I think the revocation of the license of Heritage Bank by the CBN is a step in the right direction.
“This proactive step by the CBN is in the overall interest of financial system stability.
“With the NDIC taking over the liquidation process, efforts should be made to protect the Depositors as well as interests of employees using liquidation dividends”, he said.
While justifying the bank’s license revocation decision, the CBN Ag. Director, Corporate Communications, Mrs. Hakama Sidi Ali explained that the Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.
She stated that even after engaging with the bank and prescribed various supervisory steps to stem the decline,
the bank continued to suffer and has no reasonable prospects of recovery.
Consequently, she said, the CBN took the action to strengthen public confidence in the banking system and ensure that the soundness of the nation’s financial system is not impaired.
Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC), said it has commenced liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank depositors in accordance with Section 55 sub-section 1 & 2 of the NDIC Act 2023.
The Corporation informed that depositors of the bank that have alternate account within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account, while depositors with funds in excess of N5 million will be paid liquidation dividend upon realization of the bank’s assets and recovery of debts owed to the bank.
NDIC, however, said, all depositors of the defunct bank without alternate bank account in the industry should visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s license, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums. Or file online claim by visiting the NDIC website claims page on www.ndic.gov.ng/claims/claims, download and fill the claims forms and upload the required documentation.
The Corporation also urged creditors to visit the nearest branch of the bank to file their claims or via the online platform, noting that the process of payment of creditors would commence immediately after all depositors have been paid.
It also advised the debtors that are yet to complete the repayment of loans to contact the Corporation’s Asset Management Department (AMD), or visit the NDIC website for more details.
