The Nigeria Deposit Insurance Corporation (NDIC) has embarked on re-strategising programmes to enhance its regulatory and supervisory functions in the banking industry.
The Corporation at the weekend in Lagos engaged the chairman and members of the Senate Committee on banking, insurance and other Financial institutions, on a retreat with the theme: “Deposit Insurance in Nigeria: Re-strategizing for Tomorrow”.
At the retreat, the Corporation shared with the Senate committee some of the measures it has taken to strengthen the deposit insurance system in the country.
The measures according to Bello Hassan, managing director/chief executive, NDIC, include the migration to Differential Premium Assessment System (DPAS) from the flat-rate method of assessing and collecting premium with a view to aligning the pricing of deposit insurance to the risk profile of individual banks and the collaboration with the CBN to shift from the compliance-based examination to Risk Based Supervision (RBS).
“It is also instructive to indicate that the NDIC is keenly involved in ensuring adherence to corporate governance principles in the banks,” he said.
Represented by Mustapha Mohammed Ibrahim, executive director (Operation) NDIC, he said the target ratio was also developed to ensure operational readiness in deposit insurance guarantee, while deposit insurance cover has been reviewed upward overtime in response to changing deposit distributions in the banks.
“Our world, as we know, is rapidly changing. Innovations and threats to existing models of business, regulation and supervision are manifesting in our operations. Regulators in financial systems across the globe are also brainstorming on fresh ideas to ensure that the financial system remains resilient, sound and stable so as to continue to play its supportive role in the economy,” he said.
The NDIC is therefore not left out in re-strategising to enhance its operations, he added.
The managing director noted that the Corporation has enhanced collaboration with relevant stakeholders like the National Assembly, Federal Ministry of Finance, Budget and National Planning, the Judiciary and the CBN on almost all relevant activities.
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According to him, the Corporation is also active on the global scene, and has embarked on robust collaboration and cooperation with other deposit insurance agencies and global bodies, particularly in the area of knowledge and information sharing.
“The aim of these efforts is to effectively address the technological, legal, regulatory, and supervisory challenges facing the deposit insurance system,” he said.
Speaking at the retreat, Uba Sanni, chairman, Senate committee on banking, insurance and other Financial institutions, said the Committee in its efforts towards regularly engaging critical stakeholders in the financial and banking sectors jointly organises retreats of this nature for discussion and painstaking analysis on a wide range of issues whose outcome will be of great benefit to the sectors and the Nigerian economy at large.
“Engagement of this nature gives us the platform to deeply look into our activities and responsibilities and also examine how far we have gone in carrying out our mandate as required. Jt helps in injecting fresh ideas into our operations which will materialize into an improved, effective and efficient service delivery to Nigerians,” Sanni, who was represented by Olubunmi Adetunbi, senator, said.