NDIC moves to scale up deposit insurance framework for faster, orderly resolutions of liquidated insured institutions



–Pix(above): Mr. Bello Hassan, MD/CEO, NDIC


In a bid to boost depositors’ confidence amidst emerging issues and challenges in the banking system, the Nigeria Deposit Insurance Corporation (NDIC) has moved to scale up deposit insurance framework aimed at ensuring faster and orderly resolutions of liquidated insured institutions in the country.

The scale-up which actually began in May this year, with active participation of the relevant stakeholders, had seen the corporation developing and deploying the Single Customer View (SCV) platform for the Microfinance and Primary Mortgage Banks, among others, in order to strengthen its processes and procedures for data collection.

Revealing this, Monday, in his keynote address at the 19th edition of the workshop for Business Editors and  members of Finance Correspondents Association of Nigeria (FICAN), in Port Harcourt, Rivers State, Managing Director/CEO, NDIC, Mr. Bello Hassan, said the platform would not only ensure availability of quality, timely and complete data to the NDIC, but would eliminate delays often experienced in reimbursing depositors following revocation of institutions’ licenses by the CBN.

“The final phase of the implementation of the SCV for Deposit Money Banks (DMBs) will be achieved through the incorporation of the SCV template as part of the on-going Integrated Regulatory Solution (IRS) jointly being developed with the CBN,” Hassan said, adding that “in the area of consumer protection, the Corporation has strengthened its complaints resolution platforms, which include the Toll-Free Help Desk, social media handles and Complaints Desks in the Bank Examination, Special Insured Institutions and Claims Resolutions Departments, as well as our Zonal Offices, to receive and process complaints from depositors.”

On deposit guarantee, he said as at June 30, 2022, the NDIC had provided deposit insurance coverage to a total of 981 insured financial institutions, the breakdown which includes: thirty-three (33) DMBs made up of Twenty-Four (24) Commercial Banks, Six (6) Merchant Banks and Three (3) Non-Interest Banks (NIBs) plus Two (2) Non-Interest Windows; 882 Microfinance Banks (MFBs); 34 Primary Mortgage Banks (PMBs); Three (3) Payment Service Banks (PSBs) and 29 Mobile Money Operators.

“The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in-liquidation. The liquidation activities, as at June 30, 2022, covered a total of 467 insured financial institutions in-liquidation, comprising 49 DMBs, 367 MFBs, and 51 PMBs.

“As at June 2022, the NDIC had cumulatively paid ₦11.83 billion to over 443,949 insured depositors and over ₦101.37 billion to uninsured depositors of all categories of banks in-liquidation.

“It is most profound for me to say that, out of the 49 DMBs in-liquidation, the Corporation, in September, 2022, declared 100 per cent liquidation dividend in 20 of those institutions, meaning that the Corporation has realized enough funds from their assets to fully pay all depositors of the listed banks.

“Distinguished participants, permit me to reiterate that the foregoing landmark achievements and others, would not have been possible, without the active support of the strategic stakeholders seated in this hall, a partnership we cherish dearly,” the NDIC CEO enthused, noting that “through better understanding of our programmes and policies, it is hoped that, you will not only be better informed in the coverage of our activities, but also be well-equipped to contribute to our advocacy and mobilization for a resilient financial system.

“I therefore call on you all, to continue to support the Corporation in its resolve to deliver on its core mandates. On our part, we promise to keep our doors open to your suggestions and observations.

Members of the Association of Corporate Affairs Managers of Banks (ACAMB) also participated in this year’s edition.”/SHARE THIS

  • Tags: Bello Hassan, NDIC, ACAMB, Business Editors, FICAN Workshop

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