NDIC sets up EFCC desk to strengthen investigation of parties responsible for bank failures
The dedicated desk at EFCC would enable closer collaboration between the two agencies, facilitating the exchange of information, expertise, and resources.
The Managing Director/Chief Executive Officer, NDIC, Mr Bello Hassan, disclosed at the 2023 NDIC workshop, organised for business editors and members of the Finance Correspondents Association of Nigeria (FICAN), on Wednesday in Owerri.
Hassan said that the dedicated desk at the EFCC would enable closer collaboration and coordination between the two agencies, facilitating the exchange of information, expertise, and resources.
This synergy, he said was crucial for ensuring that cases involving bank failures were thoroughly investigated and that those responsible were brought to justice. He also said that the corporation had introduced the Single Customer View (SCV) framework to enhance speedy payment of insured sums to depositors of closed banks.
This initiative had streamlined the process of identifying, verifying, and compensating eligible depositors, ensuring that they received their insured funds promptly upon bank closure.
Speaking further on the positive outcomes achieved as a result of the NDIC dedication and efforts toward the corporations goal, he said the NDIC had also enhanced collaboration with the bar and the bench.
According to him, this is leading to speedy dispensation of justice and more informed judgements on failed banks cases. Hassan said that the NDIC had equally put in place policy and framework on Alternative Dispute Resolution for out-of-court settlement.
He noted that this had enabled the corporation to resolve some hitherto protracted failed bank litigations. He said that the corporation also reviewed the framework for Differential Premium Assessment System (DPAS), to make it more risk sensitive and account for significant developments in the Nigerian banking system since its adoption in 2008.
Hassan also disclosed that the corporation had also reached an advanced stage in the review of the maximum deposit insurance coverage, to account for the impact of macroeconomic developments, since its last review.
“It is our belief that the new coverage level, once approved, will go a long way in reinforcing depositors’ confidence on the NDIC’s deposit guarantee scheme,” he said.
He also said the corporation had enhanced public awareness on the benefits and limitations of the deposit insurance system and financial literacy, to complement the consumer protection efforts of the Central Bank of Nigeria.
Hassan said that the corporation had invigorated its liquidation activities, and greatly increased debt recovery rate. According to him, this has led to declaration of 100% liquidation dividends to depositors of over 20 deposit money banks in liquidation.
This, he said, was to reduce the rate at which small depositors were defrauded, thereby enhancing confidence in the banking system.
“We have also improved our systems, processes and procedures to promote transparency and accountability in our operations, amongst other humble achievements,” he stated.
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