Depositors of Fortune, Triumph Banks to be Paid Soon – NDIC
- By Simeon Ogoegbulem
- Published April 27th, 2011
- News
- Unrated
DEPOSITORS of Fortune International Bank and Triumph Bank may soon receive part of their trapped deposits in the two banks, BusinessWorld Intelligence can now disclose. The Central Bank of Nigeria (CBN), few years ago, revoked the banking licences of the two banks.
The promoters of the two banks dragged the apex bank challenging the legality of the action of the apex bank. The Nigeria Deposit insurance corporations (NDIC), as the official liquidator of failed banks, were joined in the suit, thus stalling the payment of the depositors of the two banks.
BusinessWorld Intelligence can however disclose that NDIC is exploring other ways and means of ensuring that depositors in the two failed banks are paid as soon as possible. Alhaji Umaru Ibrahim, NDIC boss, who dropped the hint in Abuja said that his corporation is “seeking ways and means of advancing the cause of depositors without prejudice to the ongoing court cases so that we can give succour to the depositors of the two banks.”
Ibrahim further assured that NDIC would encourage the interim management board of those two banks to look at ways and means of paying their depositors even when the case is still in court. He stated that the interim management of the two banks are the ones that will pay “because they are still in business recovering debts owed to the two banks.”
On Savannah and Societe Generale Bank Nigeria (SGBN), Ibrahim disclosed that while both CBN and the corporation were ready to give them the necessary support they need to come alive again, “the ball is in their courts.” He stated that as part of efforts to encourage the two banks to reopen shop again, the two regulatory institutions set up a joint committee “to work on the modalities of encouraging the two banks to come back to life.”
According to him, “we took steps to safeguard the assets of the bank nationwide, we kept them under lock and key, hired security men and partnered with the police and after the return of their licences, we arranged with them and gave them back all their branches intact, all their documents and even some of their monies we were holding for them.”
Ibrahim expressed strong confidence that the two banks have been exploring ways and means of getting credible investors so that they can come alive. “It is not easy when you close shop as a bank for many years and it is not easy to come back,” he said. “I think raising the minimum capital is part of the major reason why they have not come back to life.”
The promoters of the two banks dragged the apex bank challenging the legality of the action of the apex bank. The Nigeria Deposit insurance corporations (NDIC), as the official liquidator of failed banks, were joined in the suit, thus stalling the payment of the depositors of the two banks.
BusinessWorld Intelligence can however disclose that NDIC is exploring other ways and means of ensuring that depositors in the two failed banks are paid as soon as possible. Alhaji Umaru Ibrahim, NDIC boss, who dropped the hint in Abuja said that his corporation is “seeking ways and means of advancing the cause of depositors without prejudice to the ongoing court cases so that we can give succour to the depositors of the two banks.”
Ibrahim further assured that NDIC would encourage the interim management board of those two banks to look at ways and means of paying their depositors even when the case is still in court. He stated that the interim management of the two banks are the ones that will pay “because they are still in business recovering debts owed to the two banks.”
On Savannah and Societe Generale Bank Nigeria (SGBN), Ibrahim disclosed that while both CBN and the corporation were ready to give them the necessary support they need to come alive again, “the ball is in their courts.” He stated that as part of efforts to encourage the two banks to reopen shop again, the two regulatory institutions set up a joint committee “to work on the modalities of encouraging the two banks to come back to life.”
According to him, “we took steps to safeguard the assets of the bank nationwide, we kept them under lock and key, hired security men and partnered with the police and after the return of their licences, we arranged with them and gave them back all their branches intact, all their documents and even some of their monies we were holding for them.”
Ibrahim expressed strong confidence that the two banks have been exploring ways and means of getting credible investors so that they can come alive. “It is not easy when you close shop as a bank for many years and it is not easy to come back,” he said. “I think raising the minimum capital is part of the major reason why they have not come back to life.”
