NDIC begins liquidation of 89 acquired MFBs, PMBs
NDIC has commenced final liquidation process for 89 closed Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) following their successful acquisition by new institutions. These banks were part of the 179 MFBs and 4 PMBs whose licenses were revoked by CBN on May 22-23, 2023.
Through Purchase and Assumption (P&A) resolution model, 89 new institutions have been licensed to acquire the assets and liabilities of these defunct banks and are now operating under new names. The NDIC, acting as Liquidator, will present applications to Federal High Court to obtain dissolution orders for the closed banks and release the Corporation from its liquidation duties.
This final step completes the resolution process for these failed institutions. For depositors of the original banks, this signifies the conclusion of the acquisition process and the establishment of final legal closure. The NDIC's action follows its enabling Act and relevant laws to ensure proper winding down of the defunct banks.
What does this mean for depositors and the Nigerian banking system? The liquidation conclusion provides finality to the resolution of these failed institutions while protecting depositors through the acquisition process.