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The Managing Director, MD, of the corporation, Alh. Umaru Ibrahim, gave the warning at a press briefing in Abuja, yesterday, to mark its 25th anniversary.
In his words…
“The problem of wonder banks are emerging again and the public must be careful about anyone coming to them and promising very high deposit interests which could be at the detriment of the deposit itself
“If someone comes and promises a very high interest in order to take your money. You should be careful because his real intention might be to run away with your deposit”
“a cumulative amount of ¦ 6.825 billion was paid to 528,277 insured depositors of the 48 DMBs in-liquidation as at August 31, 2014. While for the 186 closed MFBs, the cumulative amount of N2.756 billion had been paid to 80,059 verified depositors as at 31st August, 2014”
“In order to engender confidence of the public in subscribing the products of the MMOs, the NDIC has considered as imperative the extension of deposit insurance to the individual subscribers of the MMOs in the form of pass-through deposit insurance. The framework for making the pass- through insurance scheme operational is currently being finalised by the Corporation”
“the maximum deposit insurance coverage was increased from its set level of N50,000 at inception to N200,000 in 2006 and subsequently to N200,000 in 2010 and later to its present level of N500,000 for DMBs. Deposit insurance was extended to Microfinance Banks/Primary Mortgage Banks in 2006 with a coverage level of N100,000, which was increased to N200,000 in 2010”
The NDIC boss revealed that banks’ contributions to the Financial Stability Fund which has been reduced from 0.5 to 0.4 per cent premium base rate would be further reduced to 0.3 to encourage banks in their contribution to the Financial Stability Fund and reduce the cost of funds by deposit money banks.
The earlier cut in banks’ contribution saved them about N53 billion between 2011 and this year, he said, expressing optimism that a further downward review would save banks more funds.
