- An effective Risk Based Supervision framework has been put in place to enable it protect depositors against unethical practices and other infractions in the banking sector. This statement was made by The Nigerian Deposit Insurance Corporation on Tuesday.
- It also said that an effective distress resolution mechanism had been put in place to protect bank depositors as well as ensure the safety, soundness and stability of the banking system.
- The Managing Director, NDIC, Alh Umaru Ibrahim, stated this, while speaking at the corporation’s special day during the 10th Abuja International Trade Fair.
- Ibrahim said the corporation, in line with its mandate, had taken steps to ensure confidence in the banking sector, noting that as of December 2014, a cumulative liquidation dividend of N94.73bn had been paid to 250,592 uninsured depositors of 49 closed Deposit Money Banks.
- In the same vein, he said within the same period, the corporation had paid a cumulative sum of N6.83bn as insured deposit to 528,277 depositors of 49 closed DMBs.
- He was represented by the Deputy Director, Strategy Development Department, NDIC, Mr. Stanley Balogun, he said, “The corporation continues to conduct risk based supervision in collaboration with Central Bank of Nigeria on the 22 DMBs, 882 Microfinance Banks and 61 Primary Mortgage Institutions.
“It also carries out other critical investigations in order to send strong signal to bank operators against unethical and other infractions prevalent in the banking system.”
He lamented that while the NDIC had been performing its mandate creditably, the plan of the Federal Government to review its act in order to ensure its effectiveness could not be achieved before the end of the seventh National Assembly.
He said if the amendment of the act had scaled through, the corporation would have functioned with greater operational efficiency as a deposit insurer.