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.
The Managing Director of the Corporation, Bello Hassan, made the disclosure 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 among which is the 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 a significant transformation with new services and products that have emerged while new players, financial technology companies (fintech), 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.
Earlier in his remarks, the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Uba Sani, said that both NDIC and the National Assembly were critical to national development and the safeguarding of the banking sector.
He said the committee will continue partnering with NDIC to deepen financial inclusion.
Sani described the retreat’s theme as apt since it provides a good platform for thorough brainstorming to energise and take retrospectives at the banking industry.
He assured that the committee would help strengthen the financial sector and energise the supervisory roles of the NDIC.
He said: “This meeting is good to know the performance of NDIC. Are there obstacles standing against their optimum performance? How can we intervene and all that?
“Our economy is struggling to get its bearings. Let us x-ray NDIC and look at its strengths and weaknesses and recommend a way forward. This engagement is worthy of our time and attention,” the Committee Chairman said.