NDIC: Banking Sector Now Able to Absorb Financial System Shocks
According to the Nigeria Deposit Insurance Corporation (NDIC), the banking sector is now impervious to economic and financial system shocks.
Bello Hassan, its Managing Director, announced this at a retreat hosted by the NDIC in Lagos for members of the Senate Committee on Banking, Insurance, and Other Financial Institutions.
Hassan, who was represented by NDIC Executive Director (Operations) Mustapha Ibrahim, argued that good risk-based management was still vital to a safe and sound financial system.
“Under the risk-based supervisory format, the NDIC and the Central Bank of Nigeria have a very comprehensive supervisory framework; the risk-based approach is actually proactive.” We strive to foresee all of these hazards — macro, micro, domestically and worldwide – and address them when they arise.
“It’s so dynamic,” he added, “that we’re continually monitoring the industry in real time and fine-tuning our supervisory tools, both onsite and offsite, to alleviate some of the issues the banks may be encountering.”
He also expressed relief that the Nigerian banking industry was currently resilient to the majority of these challenges, particularly external shocks over which the Corporation had no control.
Senator Uba Sani, Chairman of the Senate Committee on Baking, Insurance, and Other Financial Institutions, said the retreat showed progress in building long-term, mutually beneficial relationships.
“The National Assembly and the NDIC are vital institutions for the growth and development of the Nigerian economy,” he stated. While we offer the legislative and institutional frameworks, the NDIC is responsible for regulatory and supervisory oversight of the banking sector.”
“Engagement of this sort provides us with the opportunity to analyze our operations and responsibilities in greater depth, as well as assess how far we have progressed in carrying out our mission as required,” Sani said.
It contributes to the infusion of new ideas into our processes, which will result in better, more effective, and efficient service delivery to Nigerians.”
