NDIC dismisses distress rumours on banks

The Nigeria Deposit Insurance Corporation (NDIC), has described as untrue and a ploy to destabilise depositors’ confidence in banks, the messages making the rounds that some financial institutions are now distressed.

The Managing Director/Chief Executive of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, who called on the public to ignore such rumours, said the assurance has become necessary to avert further slide in confidence against banks, adding that it is only meant to de-market those banks.

Ibrahim, while meeting with the executive members of the Alumni Association of the National Institute (AANI), Abuja chapter, during a courtesy call on NDIC, said the institution continues to monitor closely the challenges of the banking industry, assuring that all is well.

According to him, NDIC 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 troubled banks.

He however, said the major challenges of the industry like poor corporate governance, insider loans and non-performing loans are currently under control to further safeguard depositors’ interest in the system.

But the Chairman of AANI Abuja Chapter, 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.

He also commended the corporation’s efforts toward protection of depositors’ funds and consumer protection activities.
He however, canvassed a knowledge sharing opportunity, extending an invitation for one of NDIC staff to share the NDIC experience with AANI members, as part of contributions to the strengthening of the association.

The safety net chief said with the strict supervision and regulation of the banking industry in collaboration with the Central Bank of Nigeria, depositors should have full confidence in the safety and security of their funds in the licensed banks.

“We have enhanced the effectiveness of our mandate, as well as vast experience in the complex exercise of failure resolution and sought to share the experience through documentation and publication of the failure resolution of years cases of failed insured Deposit Money Banks (DMBs) in five volumes.

“The compendium highlighted key lessons learnt by the corporation in the exercise in order to prepare itself for the future,” Ibrahim said.Speaking of efforts toward promoting financial literacy, he added 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.