NDIC Innovating To Boost Depositor Protection, Banking System Stability – Bello Hassan

NDIC MD/CEO, Bello Hassan

Challenges posed by technological disruptions have continued to define the global banking landscape, calling for innovations and stronger collaborations to deliver improved values to the banking public and the society at large.

The managing director and Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan said this recently in Port Harcourt at a forum organised for Business Editors and Finance Correspondents.

He underscored some bold steps being taken by the Corporation to energize its processes and procedures, towards a more effective discharge of its depositor protection mandate while restating the determination of the NDIC management, to work harmoniously with all stakeholders, towards enhancing the effective discharge the mandate of the Corporation.

Hassan outlined the vision and policy direction of the Corporation under his stewardship to include scaling up the deposit insurance framework; provision of timely support to insured institutions as and when required; faster and orderly resolutions of liquidated insured institutions; and to continue to assist the CBN in promoting the stability of the banking system.

According to the NDIC boss, the Corporation has embarked on series of strategic initiatives to achieve the desired vision which include; Faster and orderly resolution of liquidated banks, Consumer Protection, Deposit Guarantee and Bank Liquidation.

According to Hassan, in the area of scaling-up the deposit insurance framework and ensuring faster and orderly resolutions of liquidated insured institutions, in May this year, the NDIC developed and deployed the Single Customer View (SCV) platform for the Microfinance and Primary Mortgage Banks.

He added that the successful deployment of the SCV was achieved with the active participation of relevant stakeholders, to strengthen the processes and procedure for data collection.

In his words, “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.

“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.” Hassan said.

In the area of consumer protection, 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.

As at June 30, 2022, the NDIC provided deposit insurance coverage to a total of 981 insured financial institutions. The breakdown includes: thirty-three (33) DMBs made up of Twenty-Four (24) Commercial Banks…

“Six (6) Merchant Banks and Three (3) Non-Interest Banks (NIBs) plus Two (2) Non-Interest Windows; 882 Microfinance Banks (MFBs); 34 Primary Mortgage Banks (PMBs); Three (3) Payment Service Banks (PSBs) and 29 Mobile Money Operators.

The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in liquidation. The liquidation activities, as at June 30, 2022, covered a total of 467 insured financial institutions in-liquidation, comprising of 49 DMBs,367 MFBs, and 51 PMBs.

“As at June 2022, the NDIC had cumulatively paid ₦11.83 billion to over 443,949 insured depositors and over ₦101.37 billion to uninsured depositors of all categories of banks in-liquidation.

“It is most profound for me to say that, out of the 49 DMBs in-liquidation, the Corporation in September, 2022 declared 100 per cent liquidation dividend in 20 of those institutions, meaning that the Corporation has realized enough funds from their assets to fully pay all depositors of the listed banks.”

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