NDIC To Support Insured Institutions Facing Financial Difficulties

NDIC MD/CE Mr. Bello Hassan.

The Nigeria Deposit Insurance Corporation (NDIC) has yielded to the call to support insured institutions facing financial difficulties in the country.

This was disclosed by its Managing Director/Chief Executive, Mr Bello Hassan in an opening remarks at the annual seminar for Financial journalists and other stakeholders in Ibadan, Oyo State.

TheFact Nigeria reports that NDIC has successfully organised this seminar for Nineteen (19) years, deepening the knowledge and reportage of the Financial journalists and stakeholders like: the Civil Society Organisations (CSOs) and Heads of Communications Department of Banks in Nigeria.

Speaking, Mr Hassan said, “there have been recent calls on the Corporation to enhance the provision of support, to insured institutions that are facing financial difficulties.

“To this end, we have identified the need to reconsider our framework, to provide realistic terms and conditions that will enable qualifying insured financial institution promptly access technical and or financial support, in line with S.(2)(1)(b) of the NDIC Act, whilst also protecting the Corporation from possible downside risks”, he said.

He further disclosed that considering the importance of the optimum Funding Ratio in deposit insurance, the Corporation was developing an effective methodology for determining a realistic Target Funding Ratio for the Corporation.

“We have commenced the review of our approach to the determination of premium by banks to make it more risk-based, such that, the probability of the risk crystallizing, becomes a major factor in the pricing methodology of our premium going forward”, he added.

The NDIC boss noted the choice of the theme of this year’s workshop: “Enduring Extreme Disruptions: Resilience & Reinvention for Banking System Stability & Deposit Insurance” was apt considering the fact that economies across the globe continue to grapple with the devastating impact of the COVID-19 Pandemic.

He said, “it has become expedient and highly desirable, for supervisors to come up with appropriate strategies that are required to build resilience into our financial system as we seek to provide the much-needed support to the Federal Government’s economic recovery agenda. The workshop theme, as well as the papers to be deliberated upon along with the quality of the resource persons, were carefully selected to achieve the same objective.”

He said, the recent Award of Special Recognition conferred on the NDIC, for its supports and efforts to sustain the growth of Financial Journalism in Nigeria, was as a result of the harmonious working relationship that exists between the Corporation and the body of Business Editors and Finance Correspondents since the establishment of the Corporation.

He said, the FICAN “workshop, has always been an important part of our capacity building initiative for the media, towards ensuring their better understanding of the Corporation’s role in ensuring financial system stability.

“It is also aimed at strengthening and broadening their ability to interrogate and interpret current developments in the financial services sector in general.

“I am extremely delighted that in the Nineteen (19) years of this laudable engagement, the objectives of the workshop are continuously being met, judging by the knowledge imparted on participants, as demonstrated by the high quality of reportage that we read in the media on a daily basis”, he said.

He assures that the current management of the NDIC, would work harmoniously with all stakeholders, to enhance the capacity of the Corporation in the discharge of its statutory obligations towards the fulfilment of the public policy objectives for which it was established.

“We are equally collaborating with relevant stakeholders, to ensure that the Corporation discharges its responsibilities efficiently without hindrances, following revocation of licenses of any insured institution by the CBN. This has become more important to us, giving the need to improve on our processes in resolving liquidated financial institutions. Some of the obstacles bedeviling the efficient and timely resolutions of liquidated institutions, such as slow recovery and realization of assets, as well as litigation by erstwhile shareholders and creditors of closed banks can only be addressed through effective collaboration.

“In all these collaborative efforts, the media, the civil society groups, along with the insured financial institutions that are represented at this workshop, will remain the most strategic and critical stakeholders that we cherish the most”, the MD said.

He was hopeful that participants would be equipped from the Seminar to contribute to the Corporation’s advocacy and mobilization for a resilient financial system.

Earlier, the Director, Communication & Public Affairs Department, NDIC, Bashir Nuhu welcomed the NDIC MD to his maiden edition of the FICAN Seminar since assumption of office.

He disclosed that 8 papers were selected to be presented to deepen the knowledge of participants at the seminar.

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