NDIC Completes Liquidation for 89 Closed Microfinance and Mortgage Banks
The Nigeria Deposit Insurance Corporation (NDIC) has officially announced the conclusion of liquidation processes for 89 Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs). This decision follows the successful acquisition of these institutions by new owners.
On Wednesday, NDIC revealed that it would cease liquidation activities for the identified banks, as they have been acquired under the acquisition and underwriting (P&A) resolution model implemented by the organization.
These 89 closed banks are among the 179 MFBs and four PMBs whose banking licenses were revoked by the Central Bank of Nigeria (CBN) on May 22-23, 2023. The NDIC emphasized that this step is pivotal in the restructuring of the financial sector.
Additionally, the CBN has issued licenses to 89 new institutions that are now tasked with acquiring the assets and liabilities of the defunct banks. This strategic move is expected to facilitate a smoother transition and promote stability within the financial ecosystem.
The new licensed banks have already commenced operations under distinct names, signaling the start of a new chapter for these financial institutions. According to NDIC, these upgrades enhance market competition and provide consumers with a broader array of banking options.
The transition demonstrates the effective use of the P&A agreements, which enable new entities to absorb the financial responsibilities of the insolvent banks while revitalizing the sector.
A comprehensive list detailing the names and locations of both the defunct banks and their newly established counterparts is available for review. This list provides transparency and allows stakeholders to stay informed about the changes within the Nigerian banking landscape.
