The Nigeria Deposit Insurance Corporation (NDIC) Wednesday disclosed its plans to commence the review of risk-based approach to determine premium by banks to make them more.
The Managing Director and Chief Executive Officer of the Corporation, Mr Bello Hassan, gave the hint in his keynote address at the 19th edition of a workshop organized for Business Editors and Finance Correspondents Association of Nigeria in Ibadan, Oyo state capital with the theme: ” Enduring Extreme Disruption: Resilience and Reinvention for Banking System Stability and Deposit Insurance”.
“Additionally, we have commenced the review of our approach to the determination of premium by banks to make it more risk-based, such that, the probability of the risk crystallizing, becomes a major factor in the pricing methodology of our premium going forward”, he said.
He noted that there have been recent calls on the Corporation to enhance the provision of support, to insured institutions that are facing financial difficulties, stressing that the Corporation has identified the need to reconsider its framework, to provide realistic terms and conditions that will enable qualifying insured financial institution promptly access technical and or financial support, in line with S.(2)(1)(b) of the NDIC Act, whilst also protecting the Corporation from possible downside risks.
He said the choice of the theme of this year’s workshop was apt as economies across the globe continue to grapple with the devastating impact of the COVID-19 Pandemic, adding that it has become expedient and highly desirable, for supervisors to come up with appropriate strategies that are required to build resilience into thr nation’s financial system as they seek to provide the much-needed support to the Federal Government’s economic recovery agenda.
The NDIC boss also said that the workshop has always been an important part of her capacity building initiative for the media, towards ensuring their better understanding of the Corporation’s role in ensuring financial system stability.
According to him, the program is aimed at strengthening and broadening the media ability to interrogate and interpret current developments in the financial services sector in general, noting that in the Nineteen (19) years of this laudable engagement, the objectives of the workshop are continuously being met, judging by the knowledge imparted on participants, as demonstrated by the high quality of reportage that we read in the media on a daily basis.
