THE Nigeria Deposit Insurance Corporation (NDIC) says it provided deposit insurance coverage to 33 Deposit Money Banks (DMBs) made up of 24 business banks, six Merchant Banks, three Non-Interest Banks in addition to 882 Microfinance Banks (MFBs) 34 Primary Mortgage Banks (PMBs), three Payment Service Banks (PSB) and 30 Mobile Money Schemes as at December 31, 2021.
During the opening ceremony of a retreat for the Senate Committee on Banking, Insurance & Other Financial Institutions organised by the NDIC on Saturday, June 11, in Lagos, the Deputy Director, Research Department, NDIC, Kabiru S. Katata, said that in addition to the insurance coverage, the Corporation established a Special Insured Institutions Department to supervise the MFBs and Primary Mortgage Banks in order to promote confidence and defend depositors in that sub-sector.
However, the Corporation recognized lengthy drawn-out litigation by erstwhile shareholders/administrators of closed banks and cumbersome judicial course of as a number of the challenges going through deposit insurance in Nigeria.
The stakeholders’ retreat of the committee with the NDIC had the theme, ‘Deposit insurance in Nigeria – re-strategising for tomorrow.’
Earlier in his opening remarks, Managing Director/Chief Executive, NDIC, Mr Bello Hassan, stated the Corporation has enhanced collaboration with related stakeholders like National Assembly, Federal Ministry of Finance, Budget and National (*33*), the Judiciary and the CBN on virtually all related actions.
He stated NDIC can also be lively on the worldwide scene and have subsequently launched into sturdy collaboration and cooperation with different deposit insurance businesses and international our bodies, significantly in the world of information and knowledge sharing.
The purpose of those efforts, he added, is to successfully deal with the technological, authorized, regulatory and supervisory challenges going through the deposit insurance system.
Represented by Executive Director of the company, Mr Mustapha Muhammad Ibrahim, Hassan noticed that the NDIC, has, as its public coverage goals, to defend depositors by offering a mechanism for reimbursing them in case of imminent or precise failure of insured establishments; to contribute to the monetary system stability in its function as a key participant in the monetary safety-net and to improve public confidence and systemic stability by offering a framework for the decision and orderly exit mechanism for failing and failed insured establishments.
“The sustainable development of any financial system whether or not growing or developed would largely rely on the resilience and stability of its monetary sector. As you might be conscious, monetary stability is concerning the resilience of the monetary system to stress, macroeconomic shocks, or issues at a selected establishment or market, from disrupting the broader monetary system.
“Maintenance of financial resilience therefore, requires preparation, in advance, through diligent planning, laws, robust policies and sound institutions to implement the laws and policies,” Bello famous.
Similarly, Senator Uba Sani, Chairman, Senate Committee on Banking, Insurance & different Financial Institutions, stated the theme of the retreat is apt, well timed and clearly signifies the willingness of all in the direction of aligning to the altering dynamics and evolution in the banking and monetary sectors largely occasioned by fast technological improvements and the way greatest to successfully assure the security of deposits in insured establishments for affluent development and improvement of the financial system at this crucial interval in tandem with international monetary tendencies and realities.
“As you all know, the Committee in its efforts towards regularly engaging critical stakeholders in the financial and banking sectors jointly organises retreats of this nature for discussion and painstaking analysis on a wide range of issues whose outcome will be of great benefit to the sectors and the Nigerian economy at large,” Sanni, who was represented by Senator Olubunmi Adetunbi, said.