The Nigerian Deposit Insurance Corporation (NDIC) is setting its sights on forging a stronger alliance with the Chartered Institute of Bankers of Nigeria (CIBN) to develop a risk management mechanism robust enough to address emerging threats in the country’s financial services sector.
Thompson Sunday, the managing director of the regulator, made the remark on Thursday during a visit by the president and chairman of the council of the CIBN, Pius Olanrewaju, to the NDIC headquarters in Abuja.
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The NDIC guarantees deposits in licensed banks and oversees insured institutions.
The corporation, which is eyeing a stronger collaboration in areas such as digital banking, cybersecurity, fraud prevention, and sound risk management, stated that the adoption of new technologies and market innovations by financial institutions is exposing those organisations to vulnerabilities.
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“While the phenomena of the emerging issues are on the rise, regulators and operators must come together to proffer solutions which help build a stronger financial ecosystem that withstands the vagaries of the innovations to deliver value to the economy,” a statement signed by the corporation’s spokesperson, Hawwau Gambo, quoted Mr Sunday as saying.
The NDIC boss urged the institute to take “critical interest in working more closely with regulators to fashion innovative failure resolution strategies that strengthen the overall resilience of the banking sector.”
He also restated the corporation’s commitment to supporting professional bodies in designing programmes that allow innovation to thrive, while helping maintain the stability of the financial system.
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“The NDIC shall continue to support professional institutions such as the CIBN in developing and implementing programmes that foster innovation while maintaining sound risk management frameworks and financial system stability,” he said.
According to him, the NDIC has been able to implement an upward review of deposit insurance coverage under his watch, and also embrace the use of technology to accelerate payments to the depositors of the failed Heritage Bank.
These actions, Mr Sunday added, “have significantly enhanced depositor and investor confidence in the financial system.”
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