BEVERLY HILLS, May 11, (THEWILL) – The Nigeria Deposit Insurance Corporation (NDIC), urged members of the public to ignore rumours of financial distress in some Nigerian banks saying such rumours are designed to “de market those banks and destabilise depositors’ confidence in the banking system.”
A statement from the NDIC said the Managing Director/Chief Executive of NDIC, Alhaji Ibrahim Umaru, made this call when the Executive Members of the Alumni Association of the National Institute (AANI), Abuja chapter led by its Chairman, Arc. Bola A. Balogun, paid a courtesy call on the Corporation at the NDIC head office in Abuja.
The NDIC boss noted that “the Corporation had over the years played a very critical role towards ensuring that banks were safe and sound through effective supervision of the banks, financial and technical assistance to deserving financial institutions and adoption of timely failure resolution options to problem banks.
“The Corporation, since its inception, had continued to closely monitor the challenges affecting the banking industry such as poor corporate governance, insider loans and non-performing loans in order to further safeguard depositors’ interest in the banking system.”
“The NDIC had enhanced the effectiveness of its mandate as well as its vast experience in the complex exercise of failure resolution and sought to share the experience through documentation and publication of the failure resolution of twenty (20) cases of failed insured Deposit Money Banks (DMBs) in five (5) volumes.”
He added that the compendium will highlight key lessons learnt by the Corporation in the exercise in order to prepare itself for the future insisting that with the NDIC’s strict supervision and regulation of the banking industry in collaboration with the CBN, depositors should have full confidence in the safety and security of their funds in the licensed banks.
The MD further revealed that the Corporation in collaboration with other stakeholders is proposing the establishment of a Centre for Financial and Economics Studies at the National Institute for Policy and Strategic Studies (NIPPS), Kuru to train participants in essential areas of financial and economic management.
In his response, the Chairman of AANI Abuja Chapter, Arc. Bola A. Balogun, commended the NDIC for its supervisory role which he described as an invaluable anchor for the security and stability of the nation’s financial system as he praised the Corporation’s efforts toward protection of depositors’ funds and consumer protection activities.
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