The Nigerian Deposit Insurance Corporation (NDIC) has stated that the banking sector requires a more rigorous regulation. This was disclosed by the Managing Director/Chief Executive of NDIC, Bello Hassan in Abuja.
He stated that the industry should be regulated more than any other in the economy through prudential rules and the establishment of ratios or thresholds to assess bank performance in order to assure their safety and soundness.
He also emphasised supervisory steps for digital banks, as well as the strengthening of existing consumer protection measures linked to digital deposits through increased engagement with other safety-net participants.
What NDIC is saying
Speaking at the event, the NDIC chief said, “Banks can only effectively perform their role in the economy when they are healthy, safe and sound, and as such expected to be highly liquid, adequately capitalized, with high-quality assets and robust risk management systems at all times. This is why the banking sector is exceptionally important for more rigorous regulation than any other sector in the economy.”
“The determination of compliance and performance is done through On-Site Examination and Off-Site surveillance which are the focus of discussion in this special retreat.”
Hassan stated that the corporation has continued to work with other key stakeholders to strengthen regulatory and supervisory frameworks in the banking sector in order to promote confidence and ensure the safety and stability of Nigeria’s banking sector, and that steps are being taken to protect depositors in accordance with the corporation’s mandate.
While praising the national assembly’s commitment and support, he stated that it would continue to engage and collaborate with all relevant key players to address concerns related to the banking system’s safety and stability.
He pledged that the papers provided at the retreat will serve as a roadmap for enhancing the deposit insurance system’s role in achieving financial system stability, as well as a framework for empowering the Corporation to better carry out its purpose.
