Nigeria’s financial system has remained stable and resilient in spite of the macroeconomic shock and stress occasioned by COVID-19,the Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has said.
Hassan,who announced this at the opening of a 3-day retreat organised by the corporation for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos,attributed the development to his agency’s proactive policies, supervision and support of the regulatory authorities.
He said:“The macroeconomic shock and stress brought about by COVID-19 are unprecedented. It has been recognised as the ultimate test of resilience so far to financial systems. As evidenced by the financial soundness indicators, Nigerian banks have remained resilient, by being safe, stable and sound in spite of the challenges posed by the COVID-19 pandemic. This success was due largely to the proactive policies and support of the regulatory authorities,” he said
Some of the measures taken by NDIC to strengthen the deposit insurance system in the country to include, the migration to the Differential Premium Assessment System (DPAS) from the flat-rate method of assessing and collecting premiums with a view to aligning the pricing of deposit insurance to the risk profile of individual banks and the collaboration with the Central Bank of Nigeria, CBN to shift from the compliance-based examination to Risk-Based Supervision (RBS) and the adherence to corporate governance principles in the banks among others.
According to him,NDIC is embarking on robust collaboration and cooperation with relevant stakeholders, other deposit insurance agencies and global bodies, particularly in the area of knowledge and information sharing to effectively address the technological, legal, regulatory, and supervisory challenges facing the deposit insurance system in a rapidly changing environment.
He tasked the lawmakers on appropriate legislation as well as emphasized that the maintenance of financial resilience requires preparation, in advance, through diligent planning, laws, robust policies and sound institutions to implement the laws and policies.