“NOTICE TO DEPOSITORS OF PEAK MERCHANT BANK (IN-LIQUIDATION)
The Nigeria Deposit Insurance Corporation (NDIC), the official Liquidator of the defunct Peak Merchant Bank (in-liquidation) is in the process of carrying out verification of the depositors of above named bank in-liquidation to effect payment of their Insured Deposits from Wednesday 26TH April – Saturday 6TH May.
Director, Communications and Public Affairs, NDIC, Bashir Nuhu, in a statement said the move was in line with the corporation’s mandate of deposit guaranty and reimbursement of depositors in the event of bank failure.
Nuhu noted that the verification exercise would enable depositors of the defunct bank to cross-check and ascertain their account information as well as balances with the bank as at closure, explaining, that the “process is a prelude to the payment of insured sums to such depositors.”
However, Nuhu said that the insured sum is the first and mandatory payment that depositors are paid, up to specified limit, if a bank fails.
“Depositors are paid amounts in excess of the insured sums subsequently, as liquidation dividends from proceeds of the closed bank’s assets as realised by NDIC as liquidator,” he said.
“One can imagine rather than describe the state of the assets of these institutions liquidated over 20 years ago that could be sold now and proceeds giving to depositors as liquidation dividemds,” another stakeholder says, while dismissing the exercises and the anticipated benefits with a wave of hand.
Another respondent adds, “It’s a matter of shame that managers of government institutions who receive their salaries as at when sue, will routinely dish out instruction not minding the ravaging effects of inflation, poverty and depreciation of the assets, among others. What kind of litigation hurdles that are preventing government institutions meeting their obligations to depositors for over 20 years. And you know, there were so many of them (banks) liquidated since early and late 90s. So for the depositors that are dead, it’s all over. So that’s their own contribution to a system and institutions that rather benefitted from them while they were alive. It’s very unfortunate.”
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The central bank, (CBN) had in March 2003, announced the revocation of the operating license of Peak Merchant Bank Limited following alleged overbearing influence of the chairman who was also a major shareholder in the bank.
The liquidated institution reportedly suffered from persistent illiquidity, poor asset quality, significant insider abuses and poor track record of profitability.
“However, the process of liquidation had been delayed by litigation from aggrieved shareholders,” Nuhu said.
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