MFBs’ Customers Safe With NAMBUIT – NDIC

The managing director/CEO, Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, who stated this recently said, the corporation is working with the MFBs on the National Association of Microfinance Banks Unified Information Technology (NAMBUIT).

This is to ensure that customers are not left in a limbo in the event of the failure of Microfinance banks in the country.

Speaking at a forum organised by the corporation for Editors on ‘Deposit Insurance System (DIS) and Financial System Stability’ yesterday, Bello said, the NAMBUIT is to help enhance resolutions in an event of failure.

According to him, the NAMBUIT platform, which provides uniform banking application to all the Microfinance Banks (MFBs), will facilitate easy submission of returns to the CBN and NDIC foresees an increase of MFBs getting onboard this year.

He also noted that another initiative targeted at MFBs, the Single Customer View (SCV) reporting template would address challenges of delays in the payment of their depositors in the event of their failure and liquidation of Microfinance and Primary Mortgage banks.

“In terms of supervision, the Corporation in collaboration with the CBN adopted a risk-based approach to ensure that the monitoring of financial institutions provides a more nuanced assessment of the activities of the financial institutions based on certain risk indicators. This ensures that any potential threats can proactively be flagged and appropriate regulatory/supervisory action taken.

“The Corporation, in 2022 deployed the Single Customer View (SCV) reporting template to Microfinance and Primary Mortgage banks, in order to address challenges of delays in the payment of their depositors in the event of their failure and liquidation. SCV presents single, unique and consistent information on bank depositors for faster pay-out of insured claims,” he added.

Similarly, the corporation in collaboration with the Central Bank of Nigeria (CBN) has been working on the NAMBUIT platform, which provides uniform banking application to all the Microfinance Banks (MFBs) to facilitate easy submission of returns to the CBN and NDIC.

At end-December 2022, the NAMBUIT platform, he said, had on-boarded quite a significant number of the MFBs and the number is expected to increase considerably this year.

He noted that the critical role of the Corporation in the financial sector and its impact on the economy is anchored on its four broad mandates of Deposit Guarantee, Bank Supervision, Failure Resolution and Bank Liquidation.