NDIC begins verification of depositors of defunct Peak Merchant Bank

In line with its mandate of deposit guaranty and reimbursement of depositors in the event of bank failure, the Nigeria Deposit Insurance corporation (NDIC) has commenced verification of insured depositors of Peak Merchant Bank in-liquidation towards payment of their insured sums.

According to a release signed by the Director, Communication and Public Affairs, NDIC, Bashir Nuhu, 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.

The release stated further that the process is a prelude to the payment of insured sums to such depositors.

NDIC in the release urged depositors to visit the bank’s old premises or the corporation’s office nearest to them with proof of account ownership and verifiable means of  identification for the exercise.

PEBEC to honour MDAs for contributions in ease of doing business

70% of NNPC’s AKK gas pipeline delivered, project not abandoned – Kyari

The NDIC added that the insured sum is the first and mandatory payment that depositors are paid, up to a 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.

It could be recalled that The Central Bank of Nigeria (CBN) revoked the banking license of Peak Merchant Bank Limited as gazetted on Friday, 28/2/03 in line with the then section 12 [d] of the Banks and Other Financial Institutions Act (BOFIA) 1991 as amended.

The CBN received in the third quarter of the year 2001, a number of petitions, which sought the CBN’s assistance to recover deposits that were trapped in the bank.