News
NDIC
Canvasses more support for financial sector
Nigeria Deposit Insurance Corporation (NDIC)
has assured the operators in the banking sector Nigerian of its
commitment to collaborate with relevant regulatory bodies, to
strengthen the financial sector of the economy.
Umaru Ibrahim, the Chief executive of the
corporation, who was speaking in Dutse, Jigawa State stated that
the Corporation is working with the Central Bank of Nigeria to
develop a framework that will protect depositors across board in
other to boost productivity nationwide.
“The NDIC would continue to be supporting
key initiatives the banking system. The Corporation is currently
collaborating with all relevant Regulatory Authorities to
develop a framework for integrated deposit insurance system as
well as the framework for effective resolution of significantly
important financial institutions (SIFIs)”
The NDIC boss added that Regulatory body
has been able to over the years create a level playing field for
all operator in the banking sector by extending deposit
insurance coverage to microfinance banks (MFBs), primary
mortgage institutions (PMIs) and the non-interest banks when
they come on board.
“The DIS coverage levels were increased
from N200, 000 and N100, 000 to N50, 000 and N200, 000 for
deposit money Banks (DMBs) and Microfinance Banks (MFBs)/
Primary Mortgage Institutions (PMIs) respectively”.
He further explained that to raise the
banking culture of Nigerians which he described as poor, led to
the emergence of Microfinance banks
According to him, the primary target of
microfinance initiative include people who have never had any
banking relationship in their lives either due to poor financial
literacy, remoteness from bank locations or complete ignorance
of what banking entail.
Ibrahim therefore called on the media to
play a key role in ensuring that the reason for the emergence of
MFBs is lost by educating the public on the need to patronize
MFBs.
For his part, Phllip Isakpa, Editor,
BusinessDay newspaper concurred with the NDIC chieftain
position, saying that as agents of change in any society, the
media should be in the vanguard of promoting financial literacy
amongst Nigerians. This he said would go a long way in
determining the country’s financial soundness.
He said that improved financial literacy
could result in more discerning choice of investment and other
financial products by consumers. This strengthens the incentives
for financial institutions to respond innovatively to consumer
demand, leading to a more dynamically efficient financial
system.
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