The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that in its stride to prevent bank failures, ensure healthiness of banks and protect customers deposits, it will soon introduce Integrated Regulatory System (IRS).
Integrated Regulatory System involves mainly a realtime monitoring of developments and direct access to information in banks for prompt analysis of banks healthiness by the Corporation aimed at achieving transparency of operations and boosting confidence of depositors on banks.
Already, NDIC has introduced Single
Customer View (SCV) framework that has enhanced speedy payment of insured
sums to depositors of closed banks.
The Managing Director and Chief Executive Officer of NDIC, Mr. Hassan Bello, made these disclosures while declaring open the ongoing 2023 workshop for Business Editors and Finance Correspondents Association of Nigeria taking place in Owerri, Imo state. The theme of the workshop organised by the NDIC is “Stocktaking of Deposit Insurance Practice:
Assessing the Past, Evaluating the Present and Forecasting the Future” .
Assuring healthiness of the Nigerian banks and safety of depositors funds, he said the Corporation has increased debt recovery rate leading to declaration of 100 percent liquidation dividends to depositors of over 20 deposit money banks in liquidation.
According to him, “We have introduced the Single Customer View(SCV) framework that has enhanced speedy payment of insured sums todepositors of closed banks; we have enhanced collaboration with the bar and the bench, leading to speedy dispensation of justice and more informed judgements on failed banks cases; we have equally put in place policy and framework on Alternative Dispute Resolution for out-of- court settlement, which had enabled us to resolve some hitherto protracted failed bank litigations; we have reviewed the Framework for Differential Premium Assessment System (DPAS) to make it more risk sensitive and account for significant developments that have taken place in the Nigerian banking system since its adoption in 2008; and we have established a special desk at the Economic and Financial Crimes
Commission (EFCC) which has energized investigation and prosecution of parties
responsible for failure of banks.
“The Corporation has also reached an advanced stage in the review of the maximum deposit insurance coverage, to account for the impact of macroeconomic
developments, since its last review. It is our belief that the new coverage level once approved will go a long way in reinforcing depositors’ confidence on the NDIC’s
deposit guarantee scheme.
“In complementing the consumer protection efforts of the CBN, we have enhanced public awareness on the benefits and limitations of the deposit insurance system and financial literacy, to reduce the rate at which small depositors are being
defrauded, thereby enhancing confidence in the banking system; we have invigorated our liquidation activities, and greatly increased debt recovery rate leading to declaration of 100 per cent liquidation dividends to depositors of over 20 deposit money banks in liquidation; and we
have also improved our systems, processes and procedures to promote transparency and accountability in our operations, amongst other humble achievements.”
Mr. Hassan who explained that the desire to strengthen the banks through prudential thresholds and other regulatory instruments, called for collaboration with all relevant stakeholders in the Nigerian financial system.
Some of the issues being examined at the workshop include the adequacy of the deposit insurance coverage; developments in bank distress resolution; the role of technology in the future of deposit insurance; faster reimbursement of depositors in the event of bank failure;
and of course, the roles of the media in promoting fintech in the banking system, amongst others.
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