NDIC Closes Garu Micro Finance Bank In Bauchi

NDIC Staff attending to visitors to their stand at the ongoing Kaduna International Trade Fair. Photo: BASHIR BELLO DOLLARS
The Central Bank of Nigeria (CBN) has approved the liquidation license of Garu microfinance Bank in Bauchi, according to a senior official with the Nigerian Deposit Insurance Corporation (NDIC).
The NDIC official who spoke on condition of anonymity, said that 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 banks.
To this end, he said, the NDIC has closed the Garu Micro Finance bank after the corporation has deemed that it has failed
“That is 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, according to the NDIC official, entails more than converting assets to cash, as it also involves finding new ownership for the failed bank. 
He, however, gave the assurance that the NDIC would work to determine the number of depositors, their individual deposits and modalities for paying them.
The Manager Garu Micro Finance Bank Bauchi Mallam Ibrahim Abubakar has confirmed that the bank was Monday closed by NDIC due to liquidation problem
“The bank was closed because the shareholders of the bank have been unable to recapitalize it, our concern this come at wrong time when we are paying pensioners and September salaries of civil servants, which will affect the depositors”, he said..
It was however learnt that the NDIC and its management staff are collecting forms from depositors to process their payment with designated banks across to enable them received their money. 
He recalled that the bank was operating for over 20 years in the state capital that pensioners and other depositors get used to it.


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