Distress: NDIC shuts down micro finance bank in Bauchi

From Ahmad Mohammed Bauchi

The Nigerian Deposit Insurance Corporation (NDIC) has closed Garu Micro Finance Banks (GMFB) in Bauchi state.
The Manager Garu Micro Finance Bank Bauchi ,Mallam Ibrahim Abubakar has confirmed that the bank was closed by NDIC on Monday while answering questions from reporters.
He said that the microfinance bank was closed due liquidation problem.
Abubakar said “The bank was closed because the shareholders of the bank have been unable to recapitalise it, our concerned was the closure come at wrong time when we are paying pensioners and September salaries, which will affect the depositors. But the NDIC and the management are collecting forms from depositors to process their payment with designated banks across the enable them received their money.”
He said the bank was operating smoothly for over 20 years in the state capital that pensioners and other depositors get used to the bank.
NIC official Said the Central Bank of Nigeria, CBN, approved the liquidation licence of Garu microfinance bank Bauchi.
He said The CBN has revoked the licence of Garu Micro Finance Bank Bauchi for its inability to meet up with the financial obligations guiding operations of micro finance bank as soon as possible after the NDIC officially deems that a bank has failed.
He said that its unable to meet its credit obligations, it notifies customers and the public that it has assumed the responsibilities of receiver, It closes the doors to the public and immediately starts working with the bank’s staff to bring the books of account up to date and ultimately to post all relevant entries to the bank’s general ledger.
The official said, when an insured bank fails, the NDIC becomes the receiver ,the entity appointed to protect the bank’s accounts and other property while it manages the orderly liquidation of the failed bank.
“This liquidation process entails more than converting assets to cash.
It also involves finding new ownership for the failed bank,” he said He, however, gave the assurance that the NDIC would work to determine the number of depositors, their individual deposits and modalities for paying them.