NDIC Backs CBN’s Banking Industry Reforms
…Vows Deeper Collaboration
By Patience Ikpeme
The Nigerian Deposit Insurance Corporation (NDIC) has thrown its weight behind the Central Bank of Nigeria’s (CBN) efforts to bolster the banking industry, pledging to collaborate closely in implementing reforms and enhancing regulatory frameworks.
NDIC’s Managing Director Hassan Bello, speaking at the opening ceremony of the 2023 NDIC Editors Forum in Lagos, highlighted the integral role of the deposit insurance system in ensuring financial stability.
He emphasized how the corporation’s focus on minimizing bank runs and failures complements the CBN’s mission of maintaining a secure and stable banking environment.
“The NDIC’s operations, which include strict banking supervision, reimbursement of insured depositors in case of bank failure, and orderly liquidation of failed banks, serve as a vital safety net for the financial system. This supports the fiscal authority in maintaining broader financial stability, fostering economic growth and development” Bello stated.
Acknowledging the challenges faced by the financial system due to macroeconomic factors and the ever-evolving landscape of financial services, Bello declared the NDIC’s unwavering support for the CBN’s reform measures.
“We fully align ourselves with the Central Bank’s efforts to strengthen the banking industry through enhanced prudential thresholds and other regulatory instruments,” he affirmed.
“Furthermore, we are committed to deepening engagement and collaboration with all relevant stakeholders to effectively address emerging challenges and implement solutions” he said.
Bello outlined several initiatives undertaken by the NDIC to complement the CBN’s consumer protection efforts. These include: the NDIC prioritizing deposit insurance and financial literacy campaigns to reduce fraud against small depositors and boost confidence in the banking system.
Increased debt recovery efforts have led to the declaration of 100% liquidation dividends to uninsured depositors in over 20 liquidated banks, along with payments to creditors, ex-staff, and shareholders.
The NDIC has implemented new systems and processes to enhance transparency and accountability in its operations.
“These are just some of the humble achievements we have made,” Bello concluded. “We remain committed to working hand-in-hand with the CBN and all stakeholders to build a stronger, more resilient banking industry that serves the needs of the Nigerian economy.”
The NDIC’s alignment with the CBN’s reforms and its commitment to collaboration offer a positive outlook for the Nigerian banking system. By working together, both institutions can create a more secure and stable financial environment that fosters economic growth and development.
Hassan Bello added that the NDIC’s “vast experience at the forefront of deposit insurance practice in Africa coupled with the Corporation’s resilience in the face of challenges and threats is based on the NDIC’s relentless efforts to achieve its vision: “To be one of the best deposit insurers in the world”.
“The roadmap, robustly outlined in our 2021 – 2025 Strategic Plan, takes into consideration the current realities and future trends, as well as sets out targets and objectives to ensure that the Corporation fulfills its mandate by providing excellent and efficient services to our stakeholders across board.
