The President/Chairman of Council of the Chartered Institute of Bankers of Nigeria, Ken Opara, has called on the Nigeria Deposit Insurance Corporation to improve on its monitoring mechanisms of insured financial institutions.
Opara said this while delivering a goodwill message at a recent retreat, which was a joint initiative of the Senate Committee on Banking, Insurance and Other Financial Institutions and the Corporation.
A statement from the CIBN said, “He advocated for NDIC to continue to engage robust mechanisms to monitor the financial health and stability of insured financial institutions. Regular examinations, stress testing, risk assessments and preventive steps can help identify potential vulnerabilities and prevent banks from going down.
“Reassuring the distinguished senators and the management of NDIC of the resolve of the Institute to continue to work closely with all stakeholders in the industry not only to ensure the continued success of the deposit insurance scheme in Nigeria but also to continue to guarantee the safety and stability of the Nigerian banking sector.”
The CIBN boss also noted that to boost the confidence of bank customers, the board of NDIC had been empowered to vary upward the maximum amount, which a depositor could receive from the corporation in the event of a failed insured institution, in line with prevailing economic realities.
According to Opara, the introduction of public policy objectives is in line with the International Association of Deposit Insurers’ core principles.
He added that the Nigeria Deposit Insurance Corporation had continued to uphold an unwavering commitment to the highest ethical standards and compliance with anti-corruption laws and regulations, as it secured the top position in the Independent Corrupt Practices and Other Related Offences Commission 2023 Ethics and Integrity Compliance Scorecard.
As part of efforts to bridge the knowledge gap, build capacity and create more awareness about deposit insurance schemes, the NDIC and CIBN have forged a collaboration to jointly develop and run a Deposit Insurance Scheme Certification Programme.
The CIBN boss used the opportunity to announce the certification programme, which is targeted at industry practitioners, the Academia (lecturers and students) as well as the general public.
