The Nigeria Deposit Insurance Corporation (NDIC) on Monday said there are plans to upgrade the NDIC Academy into a Centre for the Studies of Deposit Insurance in Africa for the benefit of our Sister countries.
Managing Director, NDIC Umaru Ibrahim, stated this while speaking at the 30th anniversary lecture in Abuja
He disclosed that the Academy which was established to build a highly skilled human resource to deliver the Corporation’s mandates in Abuja in June 2013, “was accredited as a training hub for the Banking industry by the Council of the Chartered Institute of Bankers of Nigeria (CIBN)”, adding that “There are plans to develop it into a Centre for the Studies of Deposit Insurance in Africa for the benefit of our Sister countries”.
Ibrahim started that the first decade of the corporation was saddled with the responsibility of managing distress in the banking system adding that the It has adopted multiple distress resolution options which included provision of financial assistance to deserving institutions, imposition of holding actions, change of management of affected banks, and assisted mergers.
He said “The Corporation also implemented the Failed Banks (Recovery of Debts) and Financial Malpractices in the Banks Act 1994, which established Failed Banks Tribunals to prosecute those who were responsible for the failure of the banks”.
He further explained that the second decade in the corporation’s evolution has been defined by its responses to the regulatory challenges of bank consolidation policy of 2005 as the corporation adopted the purchase and assumption (P&A) system to resolve the problems of 13 banks whose licenses were revoked for failing to meet the N25 billion capital requirement.
“The NDIC Act was amended in 2006 to strengthen the Corporation’s powers so as to execute its mandate more effectively. However some challenges experienced since 2006 have necessitated the need to review the NDIC Act by the National Assembly”.
Ibrahim speaking further said that the Corporation over the years has introduced significant reforms such as Enterprise Risk Management, Differential Premium Assessment Systems (DPAS), built capacity of staff in Risk Based Supervision (RBS) and deployed a new performance management system.
“The Corporation also extended DIS coverage to Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs). It also reviewed the maximum coverage for different categories of deposit taking financial institutions. The last 10 years of the Corporation was characterised by accelerated institutional growth, robust collaboration with strategic partners in the financial safety net and renewed drive for financial literacy”.
He said that the corporation has introduced the Framework for a Pass-through Deposit Insurance scheme to enhance confidence, safety and stability in the mobile payment system as well as assist in the promotion of financial inclusion initiative of CBN.
“In the year 2011, the Corporation established three (3) Bridge Banks to take-over the assets and assume the liabilities of the three (3) failed banks, namely Afribank, Bank PHB and Spring Bank. Polaris Bank was also established in 2018 as a Bridge Bank following the liquidation of Skye Bank”.
Cynthia Egboboh, Abuja
