L-R: NDIC MD/CE, Umaru Ibrahim, in a chat with the CEO of Nigerian Security Printing and Minting, Abbas Masanawa during the Public Hearing at the National Assembly, Abuja.
By Barnabas Esiet.
The Nigeria Deposit Insurance Corporation (NDIC), wants legislators to closely examine enacting laws with a view to harmonizing the positions of the Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) in the NDIC Act 2006 and The Banks and Other Financial Institutions Act (BOFIA) 2004.
In his presentation for the Amendment of the BOFIA Act 2004 towards the Repeal and Re-enactment of the Bill to BOFIA 2020 at a public organized by Senate Committee in Abuja, the Managing Director/Chief Executive of NDIC, Umaru Ibrahim, said harmonization of roles would rectify overlapping mandates between the two institutions.
“Variances in the Bills that may be perceived as overlapping mandates between the NDIC and the CBN should be clarified in order to avoid any ambiguity in the laws governing their operations and should be reflected in the BOFIA 2020.” Ibrahim noted.
.This, he said was specifically critical in the area of the resolution of failing banks where the NDIC should be recognised as the primary actor in the resolution process while the CBN intervenes in the event of systemic crisis.
He also expressed the need for the Corporation to be involved in the process of licensing banks in collaboration with the CBN to ensure the necessary fit and proper checks and to establish clearer assessment of the status of financial institutions before licensing.
“The bill which seems to suggest the option of the appointment of other entities in the liquidation of failed banks should be amended to reflect the NDIC as the sole liquidator of failed banks based on the Corporation’s core mandate of Bank Liquidation.” He said.
According to the NDIC boss, clear delineation of roles between the NDIC and CBN would strengthen the legal framework and contribute towards effective and efficient collaboration in the supervision and regulation of the Banking Sector.