I am highly delighted to welcome the Managing Director of Centage Saving & Loans Limited, the representatives of the press and all guests to this memorable occasion.
As you are well aware, Nigeria Deposit Insurance Corporation [NDIC] was designed as a risk minimiser with broader mandate that includes deposit guarantee; banking supervision; distress resolution; and banking liquidation.
Hallmark Homes (Savings & Loans) Limited (HHL) is a wholly owned subsidiary of Hallmark Bank Plc. (in liquidation). HHL was established on the 14th of October, 1995 as Quintessential (Savings & Loans) Limited. It changed its name to Hallmark Homes (Saving & Loans) Limited on the 2nd of August 2001 after its acquisition by Hallmark Bank Plc. (in liquidation). It commenced operations as a Primary Mortgage Institution on 1st of October 2001.
The inability of Hallmark Bank Plc. (the parent company) to recapitalize to the tune of N25 billion by 31st December, 2005 to meet the consolidation requirement as directed by Central Bank of Nigeria led to the revocation of its banking licence on 16th January, 2006 and NDIC was subsequently appointed by the Federal High Court as liquidation to wind-up its affairs.
The revocation of banking licence of Hallmark Bank Plc. had an adverse effect on the PMI because it had no banking relationship with any other bank except the defunct Hallmark Bank. Although HHL is not in liquidation but technically, it is out of operation.
In line with power bestowed on the corporation as liquidation of the parent company, HHL was advertised for sale and due process was followed in selecting the successful bidder.
Today, I am delighted to handover the Hallmark Homes (savings& Loans) Limited to Centage Savings and Loans Limited as a going-concern.
The event marks another milestone in the commitment of the Corporation to its core mandate of depositors’ protection and contributing to the stability of the financial system. The occasion is significant following closely the recent intervention of NDIC in resolving the failure of three deposit money banks by the Bride Bank mechanism thus saving their depositors from the pains of liquidation and deposit reimbursement.
Let me appeal to the management of Centage Savings & Loans to immediately reach out to the customers of HHL on the recommencement of excellent primary mortgage services to them.
The Corporation shall monitor your achievement in the regard in its avowed commitment to ensuring stability in the financial system and encouraging banking habit among the public.
I wish to congratulate the Centage Group on its successful acquisition of the PMI.
Thank you for listening.