NDIC dismisses rumours of distress in banks

Managing Director/Chief Executive of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim has called on the members of the public to ignore rumours making the rounds that some financial institutions are now distressed.
He said the assurance has become necessary to avert further slide in confidence against banks, adding that such rumour was only meant to de-market the banks so named.
He made call in Abuja while meeting with the executive members of the Alumni Association of the National Institute (AANI), Abuja chapter, during a courtesy call on NDIC.
According to him, the institution continues to monitor closely the challenges of the banking industry, assuring that all is well.
NDIC, he stressed, had over the years, played a very critical role towards ensuring that banks were safe and sound through effective supervision of the banks, financial and technical assistance to deserving financial institutions and adoption of timely failure resolution options to troubled banks.
He, however, said the major challenges of the industry like poor corporate governance, insider loans and non-performing loans are currently under control to further safeguard depositors’ interest in the system.
Chairman of AANI Abuja Chapter, Bola A. Balogun, commended the NDIC for its supervisory role, which he described as an invaluable anchor for the security and stability of the nation’s financial system.
He also commended the corporation’s efforts toward protection of depositors’ funds and consumer protection activities.
He however, canvassed a knowledge sharing opportunity, extending an invitation for one of NDIC staff to share the NDIC experience with AANI members, as part of contributions to the strengthening of the association.
“We have enhanced the effectiveness of our mandate, as well as vast experience in the complex exercise of failure resolution and sought to share the experience through documentation and publication of the failure resolution of years cases of failed insured Deposit Money Banks (DMBs) in five volumes.
“The compendium highlighted key lessons learnt by the corporation in the exercise in order to prepare itself for the future,” Ibrahim said.