Financial System Stability: NDIC, Judiciary partner to strengthen Deposit Insurance Practice

The Nigeria Deposit Insurance Corporation (NDIC) has commended the judiciary for its effort to engender better practices in the deposit insurance sector through effective justice systems.

The NDIC said with improved understanding of the deposit insurance service sector, the judiciary can help strengthen depositors confidence via a better and improved justice system, thus, promoting stability in the nation’s financial system.

NDIC Managing Director/Chief Executive Officer, Mr. Bello Hassan, gave the commendation in his welcome address at the 2023 Sensitisation Seminar, organised by the Corporation in partnership with the National Judicial Institute (NJI) for Judges of the Federal High Courts with the theme: “Strengthening Depositors Confidence in Banks and Other Financial Institutions through Speedy Dispensation of Justice”, held in Uyo, Akwa-Ibom State.

Mr. Hassan stated that the overreaching objective of the Deposit Insurance Scheme in Nigeria, is to protect depositors in the event of failure of the insured institutions, thereby, engendering confidence and curtailing the incidence of fraud in the system.

He however noted that in carrying out its mandate efficiently, the Corporation required an effective collaboration with the judiciary, in view of its critical role in resolving disputes that often arise from revocation of banking licences, liquidation of failed banks and termination of liquidation activities.

While stating that the Corporation, since inception, has been confronted with many challenges such as misconception of its mandate and basic principles of Deposit Insurance, the NDIC Boss expressed gratitude that the seminar, organised in collaboration with the NJI, has resulted in a better understanding of the Corporation’s distinct roles by members of the Bar and the Bench as well as speedy dispensation of cases involving banks in-liquidation for the sake of financial system stability in Nigeria.

To deepen knowledge of the Deposit Insurance practice and law, Hassan disclosed that papers presented at previous editions of the annual events have been published by the Corporation under the title: “Law and Practice of Deposit Insurance in Nigeria’’ in two volumes to serve as a veritable reference material, adding that the publications are being distributed free of charge to stakeholders.