Strengthening Banks Needs Collaboration of Stakeholders - NDIC Boss
By: Bisi Akingbade
The desire to strengthen the nation's banks through prudential thresholds and other regulatory instruments, calls for collaboration with all relevant stakeholders in the Nigerian financial system, the Managing Director/Chief Executive Officer, Mr. Bello Hassan has said.
Speaking at the Financial Correspondents Association of Nigeria (FICAN) 2023 workshop, the NDIC boss noted that it's this background that informed the choice of this year’s FICAN Workshop theme: “Stocktaking of Deposit Insurance Practice: Assessing the Past, Evaluating the Present and Forecasting the Future”.
According to him, it is therefore profound and instructive, that the 20th edition of this workshop has been organized to share thoughts, knowledge and experience together with participants as critical stakeholders, with a view to defining a brighter and insightful future for the practice of Deposit Insurance System (DIS) in Nigeria.
He hinted that some of the issues to be put in perspective include the adequacy of the deposit insurance coverage; developments in bank distress resolution; the role of technology in the future of deposit insurance; faster reimbursement of depositors in the event of bank failure; and of course, the roles of the media in promoting fintech in the banking system, amongst others.
"There’s no gain saying that your
meaningful and constructive contributions in the course of this workshop are highly expected.
"It is indeed a great pleasure to welcome you all to the 20th edition of the NDIC Workshop for Business Editors and members of the Finance Correspondents Association of Nigeria (FICAN). It is gratifying that for two decades, the collaboration between the Corporation and the media through
this platform has not only been sustained, but has continued to be refined towards addressing the issue of capacity building in the field of Deposit Insurance System (DIS) in particular, and the financial system in general.
"Equally important is the expansion of scope of the workshop to accommodate members of the Civil Society Organisations, CSOs, and Association of Corporate Affairs Managers of Banks, ACAMBS. While the CSOs were included in view of their crucial role in promoting advocacy and sensitization in support of the public awareness drive of the Corporation, the ACAMB’s involvement was aimed at strengthening the media’s interface with the banks in the interest of the depositors and the larger financial system", the NDIC boss stressed.
He maintained that the Deposit Insurance System, as a critical component of the financial safety net, has continued to play critical roles in complementing the drive of the Central Bank of Nigeria (CBN), in promoting stability in the financial system, adding that this becomes more significant for the NDIC with a broad mandate of Risk Minimizer.
"As expected, the Deposit Insurer has always been impacted by the challenges that confront the financial system at various times. Though some of the challenges are universal, others are however, unique.
"Please permit me to recall that at my maiden FICAN Workshop outing at Ibadan on 20th October 2021, I underscored the determination of the current Management of the NDIC to work harmoniously with all stakeholders, particularly the fourth estate of the realm, towards a more effective discharge of the Corporation’s mandate. I also laid out the key focus of the Management Team under my humble leadership: to scale up the deposit insurance framework; provide timely support to insured institutions as and when required; ensure faster and orderly resolutions of liquidated insured institutions; as well as assist the monetary authority in promoting the stability of the banking system.
"Distinguished ladies and gentlemen, it may interest you to note that, in order to deliver on this, which is in harmony with the vision of the Corporation: “To be one of the best deposit insurers in the world”, we launched the 2021 –2025 Strategic Plan, which was formulated in consideration of current realities and trends, as well as the desire to differentiate the Corporation by providing excellent and efficient services to our stakeholders across board.
"I am glad to report that our commitment in this regard has not gone without yielding the desired results. We have introduced the Single Customer View (SCV) framework that has enhanced speedy payment of insured sums to depositors of closed banks; we have enhanced collaboration with the bar and the bench, leading to speedy dispensation of justice and more informed judgements on failed banks cases; we have equally put in place policy and framework on Alternative Dispute Resolution for out-of-court settlement, which had enabled us to resolve some hitherto protracted failed bank litigations; we have reviewed the Framework for Differential Premium Assessment System (DPAS) to make it more risk sensitive and account for significant developments that have taken place in the Nigerian banking system since its adoption in 2008; and we have established a special desk at the Economic and Financial Crimes Commission (EFCC) which has energized investigation and prosecution of parties responsible for failure of banks.
The Corporation has also reached an advanced stage in the review of the maximum deposit insurance coverage, to account for the impact of macroeconomic developments, since its last review. It is our belief that the new coverage level once approved will go a long way in reinforcing depositors’ confidence on the NDIC’s deposit guarantee scheme.
"In complementing the consumer protection efforts of the CBN, we have enhanced public awareness on the benefits and limitations of the deposit insurance system and financial literacy, to reduce the rate at which small depositors are being defrauded, thereby enhancing confidence in the banking system; we have invigorated our liquidation activities, and greatly increased debt recovery rate leading to declaration of 100 per cent liquidation dividends to depositors of over 20 deposit money banks inliquidation; and we have also improved our systems, processes and procedures to promote transparency and accountability in our operations, amongst other humble achievements," he narrated.
He was glad that the Corporation has been identified for various special recognitions and awards amongst the comity of Ministries, Departments and Agencies (MDAs) by credible bodies and institutions, some of which he highlighted as follows:
"i. Year 2021 and 2023 Overall Best Public Institution among 360 MDAs in the Independent Corrupt Practices and Other Related Offences Commission’s (ICPC) Ethics and Integrity Compliance Scorecard (EICS);
"ii. First Position in the 2021 Transparency & Integrity Index, a public sector assessment by the Center for Fiscal Transparency & Integrity Watch (CeFTIW), a non-governmental and non-partisan organization established in 2016 and supported by the MacArthur Foundation with the aim ofpromoting accountability and transparency within the public sector;
"iii. Platinum Award in 2022 by the Bureau of Public Service Reform
(BPSR) after the deployment of its Self-Assessment Tool (SAT) to Federal public institutions to assess the broad areas of governance, financial management, strategic planning, operational leadership, procurement management, etc;
"iv. Attainment of three ISO Certifications in 2023, through MSECB, a leading international provider of Audit and Certification Services, namely: Information Security Management System ISO/IEC 27001:2013, IT Service Management System ISO/IEC 20000-1:2011, and Business Continuity Management System, ISO 22301;
"v. 2023 Best Performing Ministerial Servicom Unit (MSU) in the Team “C” Category for Ministries, Departments and Agencies (MDAs) by the SERVICOM Office of the Presidency;
"vi. 2022 Best Contributing Employer in Human Resources Development by the Industrial Training Fund (ITF);
"vii. Election of the Managing Director/Chief Executive of the Corporation into the Executive Council (EXCO) of the International Association of Deposit Insurers (IADI) in October 2022; and
"viii. Election of the Managing Director/Chief Executive of the Corporation as the Vice-Chairperson of the IADI-Africa Regional Committee in
September 2023."
He emphasized that the awards and recognitions bear eloquent testimonies to the irrevocable commitment of the current Management Team of the NDIC and the staff, to bringing about a paradigm shift in the discharge of the Corporation’s mandate, saying that he sincerely hoped that the discussions at the forum would go a long way to strengthen the corporation's resolve for a more robust implementation of the deposit insurance system in Nigeria, to complement the Central Bank’s efforts in strengthening the safety, soundness and stability of the financial system.
Post a Comment
Sorry we need to know that you are not a robot.