NDIC Committed To Nigeria’s Financial System Stability- Adeleke

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Yemisi Izuora

The Nigeria Deposit Insurance Corporation (NDIC) has assured of its commitment to stabilise the country’s financial system.

Delivering a paper titled, “Refocusing Banking Supervision in Nigeria in an Era of Economic Recession” at the 2016 workshop for financial correspondents in Kaduna, the Corporations director of Banking examination department,Mr Adedapo Adeleke said that it was imperative for the country to do all that are necessary to come out of recession.

According to him, NDIC and the Central Bank of Nigeria (CBN) are relaxing some prudential requirements used to regulate the banks and directly intervening in needing institutions.

He said that this was the focus of some counter-cyclical measures considered appropriate to guarantee financial system stability given the magnitude of macro-economic stress.

Adeleke said that some of the proactive measures being implemented by the supervisory authorities were to decouple financial conglomerates, known as universal banks, and this had helped to reduce the contagion of risk.

Other measures included capital adequacy ratio which the regulatory authorities set above the Basel Committee thresholds of eight per cent and 10 per cent to16 per cent.

Speaking further he said, this has created default capital buffer and therefore serves as allowance during period of stress.

Another measure, he explained, was stress testing which banks had been put through various capital and liquidity tests which included computation of requirements under Basel II.

Adeleke said the risk supervision measure was taken by the authorities as a safety net to guarantee depositors for redemption.

He promised that the NDIC would continue to take measures to boost confidence in the financial system.

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