The Nigeria Deposit Insurance Corporation (NDIC) has commended the judiciary on its better understanding of the deposit insurance practice towards promoting stability of the nation’s financial system.
NDIC managing director/chief executive, Mr Bello Hassan gave the commendation in his welcome address at the 2023 sensitization 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.
According to a message by the NDIC, Mr Hassan said the overarching 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 bank runs in the system.
He however noted that in carrying out its mandate efficiently, the corporation required an effective collaboration with the judiciary, given its critical role in resolving disputes that often arise from revocation of banking licences, liquidation of failed banks and termination of liquidation activities.
He said the corporation has been confronted with many challenges since inception, including misconception of its mandate and basic principles of deposit insurance.
The NDIC boss expressed gratitude that the seminar organised in collaboration with the judicial institute, 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 our stakeholders.
