Savannah Bank re-licensed for operation, not liquidated – NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that Savannah Bank, one of the Nigerians’ oldest banks, has not been liquidated. It, however, said though its license was withdrawn, it has been re-licensed and has the mandate to operate fully. Daily Trust recalls that the bank has been moribund for many years, forcing its shareholders […]

The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that Savannah Bank, one of the Nigerians’ oldest banks, has not been liquidated.

It, however, said though its license was withdrawn, it has been re-licensed and has the mandate to operate fully.

Daily Trust recalls that the bank has been moribund for many years, forcing its shareholders and depositors into quandary over how to reclaim their shares and deposit.

But the Managing Director/ Chief Executive of NDIC, Mallam Bello Hassan, while speaking at the corporation’s day at the ongoing 45th Kaduna International Trade Fair said, when the bank’s license was withdrawn, it took both Central Bank of Nigeria (CBN) and NDIC to court and its license was returned.

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Bello, who was represented by Hajiya Hauwa Gambo Jimeta, said the bank can operate as it desires.

He, however, disclosed that NDIC has introduced Single Customer View (SCV) framework to expedite payment to depositors of closed banks, adding that the corporation has also made use of speedy prosecution in conjunction with the judiciary, and utilised Alternative Dispute Resolution (ADR) mechanisms and out-of-court settlements to revitalise its liquidation activities.

“The corporation has introduced the Single Customer View (SCV) framework to expedite payment to depositors of closed banks. The corporation has enhanced collaboration with the judiciary for speedy prosecution of failed insured institutions. This concerted effort has resulted in resolving long-drawn cases of closed banks such as Fortune and Triumph Banks in liquidation. We have utilised Alternative Dispute Resolution (ADR) mechanisms and out-of-court settlements, in revitalising our liquidation activities.

“These efforts have significantly improved our debt recovery rate, enabling us to declare 100 per cent liquidation dividends to uninsured depositors of more than 20 deposit money banks in liquidation. The corporation achieved remarkable success in reimbursing depositors during the recent closure of 179 Microfinance Banks (MFBs) and 4 Primary Mortgage Banks (PMBs), ensuring timely payment of insured sums.”