Why NDIC minimized risk in Banking sector – Aliyu
Protecting depositors money and ensuring transparency has been attributed as the major reason for risk-based interventions by the Nigerian Deposit Insurance Commission, deputy director, bank examination department of the NDIC, Abdulhameed Aliyu has said.
According to him, the Corporation in collaboration with the Central Bank of Nigeria has carried out risk-based interventions over the years to ensure that depositors funds are safe in banks across the country.
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Aliyu stated this at the ongoing 16th Edition of the Workshop for Finance Correspondents Association of Nigeria (FICAN) in Yola, Adamawa State tagged “Nigerian Banking System Stability: Tackling Emerging Issues.”
In his paper titled “Emerging Issues in Regulation and Supervision of Banks in Nigeria,” said the intensified oversight between the Central Bank of Nigeria and the NDIC have made banks to be uptight in discharging their functions.
“Our oversight in collaboration with the CBN in the area of oversight has ensured a more proactive approach by banks as we undertake risk-based supervision on examining banks to comply with regulations and ensure they manage their risk adequately in transactions.
“Subsequently, we have moved from individual banks to the entire banking system so that the reforms will be holistic,” he said.
Aliyu further stated that the Corporation introduced several policies to ensure effective.
“The anti-money laundering and terrorism policy Introduced by the CBN and NDIC as well as the implementation of the Bank Verification Numbers (BVN) has ensured transparency in banking transactions.
“Also, the Know Your Customer (KYC) Policy has aid banks to investigate bank customers independently especially in the case of suspicious transactions which has further strengthened the system,” he added.
He however noted that weak mutual discipline of banks and legal limitations has been some of the challenges facing Corporation.
According to him, if banks are disciplined appropriately, several complaints will not be recorded often.
