By Omoh Gabriel, Business Editor
A total of N72.692billion was the deposit trapped in 10 of the 14 banks that could not meet the minimum N25billion during consolidation. This amount would have been lost if the banks had been allowed to fail ordinarily but with the intervention of government private sector depositors in these banks were able to recover their deposit. The failed banks in liquidation which liquidation have been concluded are Allstate Trust, Trade Bank, Lead Bank, Assurance and Metropolitan. Others are City Express, Hallmark, African Express, Eagle and Gulf. Three of the four failed banks still have cases pending in court while SGBN has won its case in is preparing to return.
Analysis of the available data for 10 of the 14 banks showed that the assumed private sector deposit trapped in these banks was N72.692billion, value of assets cherry picked by four banks amounted to N20.513billion, premium paid by NDIC on the insured deposits in the 10 banks was N2.688billion, promissory notes issued by CBN amounted to N25.764billion thus giving a total of N47.856billion of total deposits equivalent accessed by depositors in these 10 banks.
A break down of the amount by the monetary authorities titled the resolution of private sector deposit in the failed banks show that in Allstate Bank the assumed private sector deposit was N22.265billion while the value of the assets cherry picked by Ecobank was N2.699billion. According to data released by the authorities the Nigerian Deposit Insurance Corporation paid a premium of N1.65billion on deposit in the bank while the CBN gave a promissory note of N11.376billion thus giving the total deposits equivalent assessed by Ecobank in Allstate to N15.725billion.
According to available figures Trade bank which was acquired by UBA had N7.327billion private sector deposit with assets that were picked by UBA worth N1.644billion and NDIC premium on the deposit amounting to N250million . The CBN released a promissory note valued N3.910billion thus giving a total deposit equivalent accessed by depositors N5.805billion.
Lead Bank which was acquired by Afribank the report said had a total private sector deposit of N7.336billion, N1.016billion worth of assets picked, NDIC paid premium of N270million with the CBN backing up depositor with a promissory note of N5.805billion. Assurance Bank that was also taken over by Afribank had private sector deposit of N5.091billion N1.754billion picked assets, N370million paid premium by NDIC and N1.872billion released by CBN thus giving depositors in Assurance Bank access to N3.996billion through Afribank.
In the same vein Metropolitan Bank which was cherry picked by UBA had private sector deposit of N1.048billion , assets valued at N250.391million. N46.185million paid premium by NDIC and N162.0066million aid from CBN in the form of promissory note thus giving private sector depositors unlimited access to their deposit in Metropolitan Bank up to N458.643million. In the case of City Express Bank acquired by UBA, the total private sector deposit was N7.808billion, assets cherry picked amounted to N680.032million, NDIC premium paid on insured private sector deposit amounted to N102million while CBN promissory note released to UBA amounted to N1.7billion thus giving private sector depositors of City express Bank access to a total of N2.482billion.
Monetary authorities data further showed that the failed Hallmark bank had a total of N12.045billion verified private sector deposit that were in danger of being lost, assets worth N10.758billion without any insurance premium and a CBN promissory note of N107million thus giving the failed bank‚Äôs depositors access to their deposit through Ecobank to the tune of N10.865billion.
African Express Bank on the other hand had a total private sector deposit of N997.848million, assets valued at N150million and CBN assistance of N185million resulting in total deposit equivalent accessed by depositors of the failed bank to the tune of N335million through UBA which acquired the private sector deposit in the bank.
Eagle Bank which was acquired by Zenith had assumed private sector deposit of N890.807million with assets valued at N1.110billion. The acquired assets were more in value than the deposit liabilities and as a result their was no need for assistance in the form of promissory note from the CBN or premium on the deposit from the NDIC. Depositors in the bank thus had access to their deposit through Zenith Bank. In the case of the failed Gulf Bank the total private sector deposit in the bank was N7.880billion, assets valued at N450million and CBN assistance N1.773billion giving private sector depositors access to N2.223billion through UBA.