NDIC adopts new reporting template to fast-track MFBs,

The Nigeria Deposit Insurance Corporation (NDIC) said it has deployed a single customer view (SCV) reporting template to microfinance and primary mortgage banks to reduce the turnaround time in the settlement of their depositors in event of failure and liquidation.

Managing Director of the Corporation, Hassan Bello, disclosed this yesterday at the opening of an editors’ forum held in Lagos.

SCV presents single, unique and consistent information on bank depositors for faster pay-out of insured claims. The new template is expected to reduce the waiting period of depositors of the specialised banks in the event of liquidation.

Hassan also disclosed that NDIC, in collaboration with the Central Bank of Nigeria (CBN), is working on a new scheme called the National Association of Microfinance Banks Unified Information Technology (NAMBUIT), a platform that would provide uniform banking application to all the microfinance banks (MFBs) to facilitate seamless filing of returns to the regulators.

“At the end of December 2022, the NAMBUIT platform had on-boarded quite a significant number of the MFBs and the number is expected to increase considerably this year,” Hassan disclosed.

Deposit insurance, he said, is critical to achieving financial stability, calling for the support of the media in deepening awareness about the activities of NDIC to strengthen the country’s banking sector.

He noted: “Coming out of the COVID-19 Pandemic and the global recession, there is no better time than now, to redirect our attention to the critical role and achievements of the Corporation in protecting depositors’ funds through enhanced supervision of insured financial institutions and deposit guarantee, to minimise the negative impact of bank failure on depositors and the financial system.

Hassan identified Ponzi schemes as a major concern in the financial system, saying NDIC has, over the years, embarked on different campaigns to enlighten the public on the threat and possible preemptive measures they could take.

In the past years, according to him, engagements with the media have resulted in a better understanding of the deposit insurance system (DIS) as implemented by the NDIC and its critical role in contributing to the stability of the financial system.

Themed ‘DIS and Financial System Stability’, the forum touched on the fundamental aspects of the Corporation’s mandate and operations, with a specific focus on deposit guarantee, bank liquidation as well as issues that threaten depositors’ confidence.