According to information released by the Nigeria Deposit Insurance Corporation (NDIC) yesterday, 467 financial institutions have been successfully liquidated, meaning that both depositors and creditors have been paid. According to the Corporation, as of the end of December 2021, there were 51 Primary Mortgage Banks (PMBs), 367 Microfinance Banks (MFBs), and 49 Deposit Money Banks (DMBs) among the insured financial institutions.
At the opening of the International Association of Deposit Insurers (IADI), Africa Regional Committee Technical Assistance Workshop, hosted by the NDIC in Abuja, Mr. Bello Hassan, Managing Director and Chief Executive Officer (CEO) of the NDIC, announced this. The theme of the workshop is “Normality in Turbulent Periods: The Stabilizing Role of Deposit Insurance.”
Hassan said: Presently, economies globally are stressed, some are still recovering from the impact of COVID-19 pandemic and the spill-over effects of the Russia-Ukraine war. As we are all aware, the fabric of the global financial stability is constantly being threatened by one form of crisis or the other.
Among the threats he listed were the conflict between Russia and Ukraine, cyber threats, slow economic growth, rising inflation, and tighter global financial conditions, all of which could aggravate already existing vulnerabilities.
According to Hassan, the NDIC has adopted various resolution mechanisms to deal with the failure of distressed deposit-taking financial institutions as one of the nation’s resolution authorities.