From Isaac Anumihe, Abuja

THE Managing Director/Chief Executive Officer (CEO) of Ni­geria Deposit Insurance Corpo­ration (NDIC), Alhaji Umaru Ibrahim, has expressed con­cern over the increasing wave of non-performing insider loans in various banks and its consequence on the stability of the nation’s banking system.

Ibrahim expressed his concern while receiving the newly elected President and Chairman of Council of the Chartered Institute of Bankers of Nigeria (CIBN), Professor Segun Ajibola, and some of his executive members who paid a courtesy call to the NDIC senior management in Abuja.

According to him, the devel­opment had posed credibility questions which were capable of eroding public confidence in the banking system. He called for strict compliance with the existing code of con­duct and a review of the exist­ing laws and regulations to provide stiffer penalties for di­rectors who take advantage of their positions by failing to pay back their loans.

The NDIC boss observed that casual staff accounted for about 25 per cent of the bank­ing industry workforce, adding that this portends a negative impact on the industry. Ibrahim noted with concern the practice of some banks that assign sensi­tive roles to casual staff, thereby exposing the banking industry to massive cases of fraud and forgeries.

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Speaking on the recent staff rationalisation embarked upon by banks, Ibrahim urged banks to exercise caution so as not to create industrial unrest. He, therefore, called on the CIBN to intervene by advising its mem­bers on the aims of the rational­isation which was targetted at weeding out bad eggs from the industry.

The NDIC Chief empha­sised that the corporation would continue to partner with the CIBN and other profes­sional bodies towards achiev­ing effective capacity building among its staff. He disclosed that 77 members of staff of the corporation were currently undergoing the Bangor/CB MBA programme which com­menced three years ago. The Bangor/CB MBA programme is an initiative of the NDIC, the CIBN and the Bangor Univer­sity, Scotland where staff of the corporation undergo up to 24 months training programme and graduate with dual certifi­cation; an MBA and Chartered Banker of Scotland. Already, 14 members of staff had graduated from the programme. He fur­ther requested the CIBN to fast track the accreditation of the Corporation’s Training Acad­emy and the introduction of the Deposit Insurance System (DIS) in the institute’s curricula in order to broaden the scope of professionalism in the banking industry.

In his response, Ajibola, ex­pressed the appreciation of the CIBN to the corporation for its positive contributions to the activities and programmes of the Institute and its support to­wards the establishment of the CIBN Bankers House in Abuja. Ajibola also commended the corporation for its contribu­tion in ensuring stability in the banking system.

The CIBN boss assured Ibra­him that the accreditation com­mittee of the institute would soon visit the NDIC Academy.

He, however, appealed to the MD/CEO on the need for further collaboration with the institute on training and other issues of mutual interest.