• Tuesday, May 21, 2024
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CBN moves to stabilise banking sector through recapitalisation – NDIC

CBN, fintechs and money laundering

The Nigeria Deposit Insurance Corporation (NDIC) says the Central Bank of Nigeria (CBN) has stepped up regulatory effort to ensure the resilience and stability of Nigerian banking sector following the global economic dynamics.

Bello Hassan, Managing Director and Chief Executive of NDIC, who made this known in Enugu on Friday while addressing participants at the NDIC Day held at the ongoing Enugu International Trade Fair, said a significant stride in that direction was the revision of the higher pegging of minimum capital requirements for banks operating in the country.

Read also:Banks’ e-payment revenue up 39% on CBN’s cashless policy

“Under the proposal, commercial banks would be required to maintain minimum capital levels of N500 billion, N200 billion and N50 billion for international, national and regional institutions, as well as N50 billion for merchant banks while national and regional non-interest banks are required to maintain N20 billion and N 10 billion respectively”, he said.
He also said that the strategic recapitalization initiative was in line with President Bola Tinubu-led Administration’s urge to grow Nigeria’s economy to the rank of $1trillion base economies.
“This will not only strengthen the banking system but would also enhance the sector’s ability to withstand financial shocks. As ever, the NDIC will continue to collaborate with the CBN in ensuring a seamless transition while safeguarding depositors interest”, he added.

The Managing Director and Chief Executive encouraged depositors of affected failed banks to come forward with Thier Bank Verification Number (BVN) ,proof of account ownership, proper identification, and/or alternative account details.

He emphasized that since Central Bank of Nigeria (CBN) revoked the licenses of 179 Microfinance Banks and 4 Primary Mortgage Banks, the NDIC continued to efficiently disburse insured sums to verified depositors of those closed institutions.

“Depositors who have undergone verification and have provided alternative account details have received their payments seamlessly within a record period of 5 working days”, he said.

Ealier, Odeiga Jideonwo, President of the Enugu Chambers of Commerce Industry Mines and Agriculture, commended the role of NDIC in protecting depositors fund with the banks and other financial institutions.

Read also: Tinubu’s fiscal profligacy stokes CBN’s aggressive monetarism

He described NDIC as a great confidence back up for Nigerian teeming depositors who had hitherto suffered dearly in the past prior to the establishment of NDIC by losing all their deposits whenever tsunami occured in the banking sector with banks closing their doors permanently against depositors.

The President however called on the CBN through its regulatory flamwork to make the work of NDIC much easier by ensuring that the chances of bank failure are reduced to the barest minimum and guarded against especially to save depositors going through the bad experience.