Liquidated banks: NDIC unveils initiative to expedite payment of compensation

The managing director of Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, says the corporation has launched an initiative to address the challenges delaying payment of compensation to the depositors of liquidated banks.

He spoke at the Nigeria Deposit Insurance Corporation Editors’ forum in Lagos on Monday with the theme, ‘Deposit Insurance System and financial system stability’.

Hassan said, “The corporation, in 2022 deployed the Single Customer View reporting template to microfinance and primary mortgage banks, in order to address challenges of delays in the payment of their depositors in the event of their failure and liquidation.

“SCV presents single, unique and consistent information on bank depositors for faster pay-out of insured claims.”

Hassan said the corporation in collaboration with the Central Bank of Nigeria had been working on the National Association of Microfinance Banks Unified Information Technology platform, which provides uniform banking applications to all the microfinance banks to facilitate easy submission of returns to the CBN and the NDIC.

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As of end-December 2022, he said, the NAMBUIT platform had on-boarded quite a significant number of the MFBs and the number was expected to increase considerably this year.

He said, “The corporation remains committed towards further strengthening the deposit insurance framework, ensuring prompt and timely support as well as fast-tracking efficient and orderly resolutions of troubled insured financial institutions according to international best practices.

“These remain our focus as we work towards our vision of becoming one of the best deposit insurers in the World.”

According to him, the critical role of the Corporation in the financial sector and its impact on the economy was anchored on its four broad mandates of deposit guarantee, bank supervision, failure resolution and bank liquidation.

“Overall, DIS is to enhance macro-economic and financial stability, by minimising the incidences of bank runs and bank failure. This is achieved through effective supervision of the insured institutions, implementation of failure resolution options and the reimbursement of insured depositors with the guaranteed sum in the event of a bank failure,” he said.