Payments, called dividends, depend on the rate of recovery from the liquidation of the assets of the institution, and the extent and priority of claims from other creditors of the institution. Final disbursements may take several years, depending on the type of assets to be realised.
Frequently Asked Questions
- How does the closing of an institution affect interest accruing on a deposit?
- What is the insurance coverage on a trust account held under the provisions of an irrevocable express trust?
- Will shareholders of an institution receive any part of their investment before depositors’ claims are satisfied?
- What does a deposit transfer involve?
Did You Know?
- Misconception: All financial institutions that take deposits are covered under the Deposit Insurance Fund - Fact: ONLY member institutions that are licensed under the Financial Institutions Act, 2008 are covered under the Deposit Insurance Fund. This legislation provides for the regulation of commercial banks and other institutions engaged in the business of banking and business of a financial nature.