NDIC Engages Senate To Enhance Regulatory Functions In Banking, Insurance Industries

The Nigeria Deposit Insurance Corporation, NDIC, has embarked on re-strategising programmes to enhance its regulatory and supervisory functions in the banking industry.

The Corporation engaged the chairman and members of the Senate Committee on banking, insurance and other Financial institutions, on a retreat in Lagos with the theme: “Deposit Insurance in Nigeria: Re-strategizing for Tomorrow”.

At the retreat, the Corporation shared with the Senate committee some of the measures it has taken to strengthen the deposit insurance system in the country.

The measures according to the Managing Director of NDIC, Mr Bello Hassan, include the migration to Differential Premium Assessment System, from the flat-rate method of assessing and collecting premium with a view to aligning the pricing of deposit insurance to the risk profile of individual banks and the collaboration with the Central Bank of Nigeria to shift from the compliance-based examination to Risk Based Supervision.

According to Mr Hassan, it is also instructive to indicate that the NDIC is keenly involved in ensuring adherence to corporate governance principles in the banks.

Represented by the Executive Director Operation, NDIC, Mr Mustapha Ibrahim, he said the target ratio was also developed to ensure operational readiness in deposit insurance guarantee, while deposit insurance cover has been reviewed upward overtime in response to changing deposit distributions in the banks.

“Our world, as we know, is rapidly changing. Innovations and threats to existing models of business, regulation and supervision are manifesting in our operations. Regulators in financial systems across the globe are also brainstorming on fresh ideas to ensure that the financial system remains resilient, sound and stable so as to continue to play its supportive role in the economy,” he said.

Mr. Hassan clarified that the NDIC was not left out in re-strategising to enhance its operations.

He noted that the Corporation has enhanced collaboration with relevant stakeholders like the National Assembly, Federal Ministry of Finance, Budget and National Planning, the Judiciary and the CBN on almost all relevant activities.

According to the NDIC Managing Director the Corporation is also active on the global scene, and has embarked on robust collaboration and cooperation with other deposit insurance agencies and global bodies, particularly in the area of knowledge and information sharing.

“The aim of these efforts is to effectively address the technological, legal, regulatory, and supervisory challenges facing the deposit insurance system”.

Speaking at the retreat, chairman, Senate committee on Banking, Insurance and other Financial institutions, Mr Uba Sanni, stated that the Committee in its efforts towards regularly engaging critical stakeholders in the financial and banking sectors jointly organised the event for discussion and painstaking analysis on a wide range of issues whose outcome would be of great benefit to the sectors and the Nigerian economy at large.

“Engagement of this nature gives us the platform to deeply look into our activities and responsibilities and also examine how far we have gone in carrying out our mandate as required. Jt helps in injecting fresh ideas into our operations which will materialize into an improved, effective and efficient service delivery to Nigerians”,he added.

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