The Nigeria Deposit Insurance Corporation (NDIC) has taken over 21 Primary Mortgage Banks (PMBs) that fell short of the Central Bank of Nigeria (CBN) regulatory guidelines.
NDIC Managing Director, Alhaji Umaru Ibrahim who disclosed this at a workshop on ‘Credit Underwriting Standards for NDIC Examiners’ held in Lagos, said available records showed that the PMBs Portfolio At Risk averaged 45.70 per cent, which is more than the prescribed five per cent threshold.
He said the affected PMBs’ licences have been withdrawn by the CBN and handed over to the NDIC for liquidation.
Efforts made to obtain the list of the liquidated PMBs proved abortive as calls to the corporation were not answered. But investigations showed that the PMBs failed to meet the prescribed capital requirements of N5 billion for National licences and N2.5 billion for State licences.