Business
NDIC pays depositors of failed banks N94.7bn in 2014
The Nigeria Deposit Insurance Corporation (NDIC) financial result for year ended 2014 has shown that it paid N94.74 billion as liquidation dividend to 250,592 depositors of banks in 2014, compared to N93.51 billion paid to 250,497 depositors as at December 31, 2013.
The breakdown of the corporation’s statement of account released yesterday stated that the NDIC last year paid N2.772 billion to 80,178 verified depositors of closed Micro Finance Banks (MFBs) against the N2.524 billion paid to 75,571 verified depositors the previous year.
The result showed that the premium paid by Primary Mortgage Banks (PMBs), MFBs, DMBs to the corporation reduced in 2014.
The NDIC disclosed that the maximum, minimum and mean rates paid for 2014 were 0.58 per cent, 0.40 per cent and 0.48 per cent compared to 0.60 per cent, 0.45 per cent and 0.50 per cent in 2013, respectively.
“The observed reduction in the maximum, minimum and mean rates paid by banks in 2014 was attributable to the reduction in base rate to 40 basis points, which was aimed at reducing the premium burden on banks as well as the improvement in the risk profile of banks,” the corporation claimed.
The NDIC said it used 40 basis points as the premium base rate before the add-ons in calculating the premium for DMBs/NIBs under the Differential Premium Assessment System (DPAS) and a flat rate of 50 basis points to compute the premium payable by PMBs and MFBs in 2014.
About 529,046 insured depositors of the closed 48 DMBs also received ₦6.832 billion during the year under review.
This is N8 million less that the ₦6.824 billion NDIC paid to 528,277 insured depositors in the previous year.
“The NDIC continued with the payment of insured deposits to depositors of closed PMBs in 2014, a cumulative payment of N2.02 million had been made to 30 verified depositors of closed PMBs in 2014,” the corporation also said.
According to the NDIC, last year, it paid N94.74 billion as liquidation dividend to 250,592 uninsured depositors of closed DMBs compared to N93.51 billion it paid to 250,497 this class of depositors in 2013.
