By Stellamaries Amuwa, Abuja
The Managing Director / Chief Executive of Nigeria Deposit Insurance Corporation (NDIC) Mr. Bello Hassan has called all relevant stakeholders in the Nigerian financial system to collaborate so as to strengthen banks through prudential thresholds and other regulatory instruments.
This was made known during the opening ceremony of the 20th edition of the workshop for Business Editors and members of the Finance Correspondents Association of Nigeria (FICAN) held yesterday in Owerri, Imo.
According to the MD/CEO NDIC, “the Deposit Insurance System, as a critical component of the financial safety net, has continued to play critical roles in
complementing the drive of the Central Bank of Nigeria (CBN), in promoting stability in the financial system. This becomes more significant for the NDIC with a broad mandate of risk minimizer. As expected, the Deposit Insurer
has always been impacted by the challenges that confront the financial system at various times. Though some of the challenges are universal, others are however, unique.
“The desire to strengthen our banks through prudential thresholds and other regulatory instruments, calls for
collaboration with all relevant stakeholders in the Nigerian financial system.”
Hassan in a press statement said “it is this background that informed the choice of this year’s FICAN Workshop theme: “Stocktaking of Deposit Insurance Practice: Assessing the
Past, Evaluating the Present and Forecasting the Future.
The statement reads, “It is therefore profound and instructive, that the 20th edition of this workshop has been organized to share thoughts, knowledge and experience together with you as critical stakeholders, with a view to defining a brighter and insightful future for the practice of DIS in Nigeria. Some of the issues to be
put in perspective include the adequacy of the deposit insurance coverage; developments in bank distress resolution; the role of technology in the future of deposit insurance; faster reimbursement of depositors in the event of
bank failure; and of course, the roles of the media in promoting fintech in the banking system, amongst others. There’s no gain saying that your meaningful and constructive contributions in the course of this workshop are
highly expected.
“it may interest you to note that, in order to deliver on this, which is in harmony with the vision of the Corporation: “To be one of the best deposit insurers in the world”, we launched the 2021 –
2025 Strategic Plan, which was formulated in consideration of current realities and trends, as well as the desire to differentiate the Corporation by providing excellent and efficient services to our stakeholders across board.
“I am glad to report that our commitment in this regard has not gone without yielding the desired results. We have introduced the Single Customer View (SCV) framework that has enhanced speedy payment of insured sums to depositors of closed banks; we have enhanced collaboration with the bar and the bench, leading to speedy dispensation of justice and more informed judgements on failed banks cases.
“We have equally put in place policy and framework on Alternative Dispute Resolution for out-of-court settlement, which had enabled us to resolve some hitherto protracted failed bank
litigations; we have reviewed the Framework for Differential Premium Assessment System (DPAS) to make it more risk sensitive and account for
significant developments that have taken place in the Nigerian banking system since its adoption in 2008; and we have established a special desk
at the Economic and Financial Crimes Commission (EFCC) which has energized investigation and prosecution of parties responsible for failure of banks.
” The Corporation has also reached an advanced stage in the review of the maximum deposit insurance coverage, to account for the impact of macroeconomic developments, since its last review. It is our belief that the
new coverage level once approved will go a long way in reinforcing depositors’confidence on the NDIC’s deposit guarantee scheme.”
