From Uche Usim, Abuja
The Nigerian Deposit Insurance Corporation (NDIC), on Thursday, said it has begun articulating a supervisory blueprint for digital banks, as well as the enhancement of existing consumer protection measures, especially as regards digital deposit, through enhanced collaboration with other safety net players.
Its Managing Director, Bello Hassan, stated this in Abuja at the 2021 retreat for the Senate Committee on Banking, Insurance and Other Financial Institutions themed; “The Role of NDIC in Promoting an Effective Supervisory Framework in the Banking Sector”.
According to him, the Corporation will continue to engage and cooperate with all relevant key stakeholders, notably National Assembly, to address issues that are germane to the sustenance of the safety and stability of the nation’s banking system.
He expressed hope that papers to be presented and deliberations at the retreat will not only come up with a roadmap that would enhance the role of the deposit insurance system in achieving financial system stability, but also set out a framework for empowering the Corporation to discharge its mandate more effectively through the instrumentality of the National Assembly.
“With the support of the Senate Committee of the National Assembly, the Corporation will continue to contribute its quota to the nation’s economic growth and development by ensuring the stability of the nation’s banking system through effective supervision.
“Deposit insurance aims to achieve two main goals. The first goal is to ensure that depositors will not lose their deposits held in insured banks if they become insolvent and subsequently fail. The second goal is to contribute to the stability of the financial system by engendering public confidence in the banking system.
In recent years, the financial services sector has experienced significant transformation with new services and products that have emerged while new players, financial technology companies (fintechs) have been challenging traditional service providers through faster, cheaper and reliable services.
“The advances in technology and its benefits in terms of increased access to new markets, financial innovation and increased consumer choices, new challenges, bordering on corporate governance and risk management have been ushered in. For example, new technologies emanating from digitalisation are driving disruption and re-shaping the future across payments and banking ecosystems. Consequently, the task of ensuring the safety and stability of the nation’s banking sector has become more crucial for the regulatory/supervisory authorities especially, the NDIC”, Hassan explained.