By Peter OBIORA investadvocate

July 28, 2010 15:20 GMT

 

The Nigerian Deposit Insurance Corporation (NDIC) is seeking bidders to takeover the defunct Hallmark Homes Limited (Savings & Loans).

 

This was confirmed to investadvocate today in Lagos Nigeria by our source (name withheld). “We have just received a letter in our office from the NDIC requesting our bid to takeover Primary Mortgage Institution (PMI) Hallmark Homes, a subsidiary of the defunct Hallmark Bank Plc acquired by Ecobank Nigeria Plc”. The source affirmed.

 

Middle of year 2010, The Central Bank of Nigeria (CBN)  announced  plans to increase the capital base of PMI’s in the country from N100 million to N5 billion. Joseph Ajewole, Acting Director (Ag Director), Banking Supervision at the CBN, confirmed that plans are underway to recapitalise Mortgage Banks in Nigeria.

 

“This plan was part of the initiative to strengthen the mortgage banks inorder to enable them perform their statutory role in the Nigerian economy. “Also the plan is an integral part of the effort to reform and stabilise the financial sector” Ajewole said.

 

On Tuesday July 28 2010, Kingsley Moghalu, Deputy Governor Financial System Stability (FSS) of the CBN at an Annual Lecture of the Association of Corporate Affairs Managers of Banks (ACAMB) affirmed that a policy pronouncement by the Apex Bank as regards Mortgage Institutions in Nigeria is on course.

“A Policy pronouncement as regards mortgage in Nigeria is on course by the CBN and would soon be made public” Moghalu said.

As at the time of filling in this Report, there was no further information available to investadvocate. However, we will keep you posted as events unfold on the planned sale of Hallmark Homes as sought by NDIC.