‘NDIC, CBN to Safeguard Nigerian Banking System’-Hassan Bello
By Patience Ikpeme
The Nigeria Deposit Insurance Corporation (NDIC) has announced that it is collaborating with the Central Bank of Nigeria (CBN) to reduce potential risks within the banking sector.
This was disclosed by the Managing Director of NDIC, Mr Bello Hassan, during a stakeholders retreat organized by the corporation for the Senate Committee on Banking, Insurance, and Other Financial Institutions in Lagos on Saturday.
Hassan emphasized the importance of collaboration and enhanced supervision to maintain a secure and robust banking system in Nigeria. He highlighted ongoing measures to supervise banks effectively, ensuring the quality of risk assets remains strong. Hassan assured that the non-performing loan ratio is currently below the maximum threshold set by the CBN, and steps are being taken to uphold this standard.
Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, Senator Mukhial Abiru, commended the resilience of the Nigerian banking sector despite economic challenges. He acknowledged the impact of currency depreciation on bank balance sheets and stressed the vital role of NDIC in ensuring stability.
Abiru affirmed the strength of banks’ ratios, liquidity, and capital adequacy, indicating a positive outlook. He expressed legislators’ commitment to understanding the regulatory landscape, particularly in light of the CBN’s plans for bank recapitalization.
Furthermore, Abiru voiced support for the CBN’s efforts to stabilize the exchange rate while underscoring the importance of combating inflation for sustained economic stability.
The retreat underscored the collaborative approach between regulatory bodies and legislative stakeholders in safeguarding Nigeria’s banking system and promoting long-term financial resilience.
