The Nigeria Deposit Insurance Corporation, NDIC, says it will continue to assist the Central Bank of Nigeria, CBN, in promoting the stability of the banking system in the country.
The NDIC Managing Director/Chief Executive, Bello Hassan, stated this on Wednesday while speaking at the 18th edition of the workshop for business editors and Finance Correspondent’s Association of Nigeria, FICAN, in Ibadan.
The workshop, themed ‘Enduring Extreme Disruptions: Resilience & Reinvention for Banking System Stability & Deposit Insurance’, is one of the NDIC’s capacity-building initiative for the media.
According to Mr Hassan, the current management of the NDIC is poised to work with all stakeholders, to enhance the capacity of the Corporation in the discharge of its statutory obligations.
Distinguished participants, permit me to 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.
He said: “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, 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.
“In addition, 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.
“Additionally, 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.”