Depositors of Savannah Bank Plc and Societe Generale Bank of Nigeria Plc whose funds were trapped in these  banks for over seven years now may get some respite soon, as an integrated action by the Nigeria Deposit Insurance Corporation (NDIC) may favour a possible roll-out for banking operations by the bank very soon.
Alhaji Umaru Ibrahim, managing director and chief executive of NDIC revealed this in Lagos over the weekend. He said a committee set up to review and analyse issues relating to the possible return of the two banks to active banking practice will submit its report by the end of the year. The content of the report, according to him, will determine the regulatory action that will be taken in due course. “Any decision that will be taken will be in the interest of the depositors. We have returned the money earlier paid by Savannah Bank for the purpose of recapitalization to them. They have also submitted their blueprint to us on how they wish to restart business”, Umaru explained. There are strong indications that the two banks may have justified their return to full business based on the efforts they have made and may become fully operational by the first quarter of 2012.
According to the NDIC boss, the banks have been offered all the assistance they need to return to active business so that losses by depositors in the industry will be mitigated to a great extent. It is believed that a good number of the banks’ branches across the country are being cleaned up. And there are indications that plans for staff recruitment have been firmed. Apart from the issues of capital structure and allied needs, BusinessWorld was told that the committee will take the holistic review of the nature of their capacities in sustaining the pressure associated with banking operations.
The NDIC managing director further explained that, “following the restoration of the banking licences of both Savannah Bank and Societe Generale Bank in 2010 through court judgment, the NDIC in close collaboration with the CBN made strenuous efforts to get the two banks to resume operations in the interest of their depositors and customers who were complaining.”
Based on the obvious situation where the corporation is limited by some statutes in taking some decisive actions so as to deliver effective operations, a process of reviewing its Act is underway. The issues being proposed include the granting of powers to review books of subsidiaries of banks, independent enforcement powers to deal with erring banks and their directors or officials. They also want a part of the Act to protect the corporation’s assets against creditors who obtain judgment against closed institutions and the granting of powers to pay insured amount to depositors in the event of imminent or actual suspension of payment by any insured institution even before the revocation of its licence.