Insured depositors of the liquidated Femaz Microfinance Bank are to come forward for verification and payment from Monday, October 5 to Friday, October 9, 2020, the Nigerian Deposit Insurance Corporation (NDIC) has announced.
The verification and payment exercise will be conducted at Femaz Microfinance Bank’s Branch on 2 Herbert Macaulay Way, Wuse 2, Abuja, the parastatal unser the Ministry of Finance stated in a recent post.
According to the NDIC, together with a valid means of identification on alternate account, the affected depositors are to present their cheque books, passbooks, and other proofs of account ownership.
In a notice on its official website, the NDIC stated:
NOTICE TO DEPOSITORS OF FEMAZ MICROFINANCE BANK (IN –LIQUIDATION)
The Nigeria Deposit Insurance Corporation (NDIC), the official Liquidator of FEMAZ Microfinance Bank (in-Liquidation) is in the process of paying insured sums to the depositors of the closed bank. By this notice, all depositors of the bank are hereby requested to visit the defunct bank’s branch at 2 Herbert Macaulay Way Wuse 2 Abuja for verification of their claims with the NDIC officials from Monday 5th to Friday 9th October 2020. Affected Depositors are to present their Cheque books, passbooks, and any other proof of account ownership together with any valid means of identification and alternate account.
Eligible depositors can also contact the representatives of the Director, Claims Resolution Department in any of the underlisted NDIC Zonal Offices to file their claims or seek further clarification.
Femaz Microfinance Bank, you would recall, was part of the 85 microfinance banks in schedule 1 of the official gazette of the Federal Republic of Nigeria, whose license were revoked due to issues related to liquidity, implying insufficient assets to meet their liabilities and their capital, to risks weighted assets ratio, regulatory capital, all falling below the minimum prescribed by the Central Bank of Nigeria (CBN).
Meanwhile, the CBN increased the minimum capital and statutory requirements for microfinance banks in Nigeria. The updated regulatory guidelines now demand for a minimum capital of N200million for a unit Tier 1 microfinance bank by April 2021, with at least N100million by April 2020.
Similarly, unit Tier 2 microfinance banks are expected to upgrade to a minimum capital requirement of N50 million within the period under review but expected to have been operating under a minimum capital of N35 million by April 2020.
In light of the regulatory reforms pursued by CBN, aimed at ensuring a stable and more liquid financial system, Femaz Microfinance Bank which was registered with CBN on 6th of February, 2015, got blacklisted on September 26, 2018 after falling to satisfy regulatory requirements.