NDIC reiterates commitment to strong deposit insurance framework

Forum 1 year ago

NDIC reiterates commitment to strong deposit insurance framework

Nigeria Deposit Insurance Corporation, NDIC, has reiterated its commitment to strengthening the deposit insurance framework in the country.

Managing Director/Chief Executive, NDIC, Bello Hassan, stated this yesterday while addressing media executives at the 2023 edition of the NDIC Editors Forum held in Lagos, with the theme, “Deposit Insurance System (DIS) and Financial System Stability”.

Highlighting the importance of DIS, Hassan said: “The critical role of the Corporation in the financial sector, and its impact on the economy is anchored on its four broad mandates of Deposit Guarantee, Bank Supervision, Failure Resolution and Bank Liquidation. Overall, DIS is to enhance macro-economic and financial stability, by minimizing the incidences of bank runs and bank failure’’.

Speaking on some of the progress achieved in 2022, Hassan said: “The Corporation, in 2022 deployed the Single Customer View (SCV) reporting template to Microfinance and Primary Mortgage banks, in order to address challenges of delays in the payment of their depositors in the event of their failure and liquidation. SCV presents single, unique and consistent information on bank depositors for faster pay-out of insured claims.

“Similarly, the Corporation in collaboration with the Central Bank of Nigeria (CBN) has been working on the National Association of Microfinance Banks Unified Information Technology (NAMBUIT) platform, which provides uniform banking application to all the Microfinance Banks (MFBs) to facilitate easy submission of returns to the CBN and NDIC.

“At end-December 2022, the NAMBUIT platform had on-boarded quite significant number of the MFBs and the number is expected to increase considerably this year.’’