The Nigeria Deposit Insurance Corporation (NDIC) has said that indicators in the financial system shows that the banking sector is safe and sound.
NDIC Managing Director, Bello Hassan disclosed this yesterday at the ongoing NDIC Workshop for financial journalists in Port Harcourt.
He said: “If you want to determine whether the banking system is safe, and sound, there are certain indicators you use to judge. Things like liquidity ratio, capital adequacy and asset quality. Looking at those indicators, one can comfortably say that the banking system is safe and sound”.
He said this reality has not only put a demand on regulators and supervisors in the sector across the world to enhance surveillance, but it has also called for stronger collaborations, in order to deliver services that are laced with constantly improved values to the banking public and the society at large.
Speaking on the theme: “Boosting Depositors’ Confidence Amidst Emerging Issues and Challenges in the Banking System”, he explained that in the area of scaling-up the deposit insurance framework and ensuring faster and orderly resolutions of liquidated insured institutions, in May this year, with the active participation of the relevant stakeholders, the NDIC had developed and deployed the Single Customer View (SCV) platform for the Microfinance and Primary Mortgage Banks in order to strengthen our processes and procedure for data collection.
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.
Hassan said 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.
In the area of consumer protection, he said 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.
Earlier, Hassan disclosed that Hassan, said that while depositors of commercial banks, Payment Service Banks and subscribers of Mobile Money Operators (MMOs) are currently insured up to maximum limit of N500,000 per depositor per bank.
Depositors of microfinance banks are guaranteed up to a maximum limit of N200,000 per depositor per bank.
He listed the affected banks as ABC Merchant Bank Limited, Allied Bank of Nigeria: Alpha Merchant Bank Plc; Amicable Bank of Nigeria Limited, Commerce Bank, Commercial Trust Bank Limited, Continental Merchant Bank Plc and Cooperative & Commerce Bank Plc.
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Others are Eagle Bank, Financial Merchant Bank Limited, Icon Limited (Merchant Bank): Ivory Merchant Bank, Kapital Merchant Bank Limited, Mercantile Bank of Nigeria Plc., Merchant Bank of Africa Limited, Nigeria Merchant Bank Plc., Pan African Bank Limited, Premier Commercial Bank Limited, Progress Bank of Nigeria; and Rims Merchant Bank Limited.
He said that the implication of this is that, through our dogged liquidation efforts, the Corporation has realised enough funds to fully pay all depositors of the listed banks. Similar Notices were also sent to Creditors of seven DMBS in-liquidation as well as depositors and ex-staff of Eurobank Savings & Loans, Okporo MFB and Eurofield MFB.
Hassan, who was represented by NDIC Director, Bashir Nuhu, explained that while the insured limits are periodically reviewed by the Board of the Corporation to ensure that majority of depositors are covered, it is important to add that depositors who have balances in excess of the insured sums are regularly paid the excess as liquidation dividends, which often extends to creditors and shareholders of the banks.
He said the essence of the corporation’s participation in the Lagos International Trade For over the years, is to continuously sensitize the banking community and general public about the existence of the Deposit Insurance Scheme (DIS) and the measure of safety offers to the financial system.
“This is important since public confidence in the financial system can only be enhanced when they are aware that their deposits are protected and that in the unlikely event of bank failure, there is an agency of government that would always safeguard their hard earned savings,” he said.