NDIC seek to provide much-needed support to Federal Government’s economic recovery agenda-Bello

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The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation, Mr. Bello Hassan while delivered his keynote address at the 18th edition of the Nigeria Deposit Insurance Corporation Workshop, for Business Editors and members of the Finance Correspondents Association of Nigeria (FICAN) stated that this is an opportunity for me to address all the esteemed members of the organization since my assumption of duty, as the new Managing Director/Chief Executive of the Corporation.

 

The 18th edition of the Workshop for Business Editors and Finance Correspondents Association of Nigeria (FICAN) on Wednesday, October 20, 2021 Held at Premier Hotel in Ibadan, Oyo

 

“I recall that on Wednesday 30th June 2021, I had the singular honour and privilege, of hosting the joint executives of the Lagos and Abuja Chapters of FICAN, who paid a courtesy visit to the Management of the Corporation. We recall also that FICAN leadership in its wisdom, conferred an Award of Special Recognition on the NDIC, for its supports and efforts to sustain the growth of Financial Journalism in Nigeria, during the 30th Anniversary Conference held in Lagos on the 25th of September, 2021.

 

These are indications 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 let me reiterate at this juncture, that this 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, he added.

 

 

He noted 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.

 

According to Bello the choice of the theme of this year’s workshop: “Enduring Extreme Disruptions: Resilience & Reinvention for Banking System Stability & Deposit Insurance” was apt. As economies across the globe continue to grapple with the devastating impact of the COVID-19 Pandemic, 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 stressed.

NDIC Boss reiterate the determination of the current management of the NDIC, to 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.

“Our key focus is therefore to scale up the deposit insurance framework; provide timely support to insured institutions as and when required; ensure faster and orderly resolutions of liquidated insured institutions; as well as continue to assist the Central Bank in promoting the stability of the banking system

In the area of Deposit Insurance, he noted that as a key mandate of the Corporation, we have evolved a strategy which accentuates our existing framework. The initiative, strives to ensure that the insurance cover is adequate to support this objective within the banking sector, he added.

In addition, NDIC boss said considering the importance of the optimum Funding Ratio in deposit insurance, we are developing an effective methodology for determining a realistic Target Funding Ratio for the Corporation.

He disclosed that 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.

“Furthermore, 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.

“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. Through the better understanding of our programmes and policies, it is hoped that you will not only be better informed in the coverage of our activities, but also be well-equipped to contribute to our advocacy and mobilization for a resilient financial system.

 

Bello urged strategic and critical stakeholders to continue to support the Corporation in its resolve to fully deliver on its core mandates. On our part, we promise to keep our doors open to your suggestions and observations, while partnering with you on capacity building and other areas of mutual benefit, he ended.

 

 


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