Abuja, Oct. 27, 2023: The Nigeria Deposit Insurance Corporation (NDIC) has commended the judiciary for improved understanding of the deposit insurance practices aimed at promoting financial system stability in the country.
This is contained in a statement by Mr Bashir Nuhu, the Director Communication and Public Affairs Department of NDIC.
The statement said the NDIC Managing Director, Mr Bello Hassan, gave the commendation on Thursday at an event in partnership with the National Judicial Institute.
Hassan said the objective of the Deposit Insurance Scheme in the country was to protect depositors in the event of failure of the insured institutions.
The managing director added that the scheme was to engender confidence and curtail the incidence of bank runs in the system.
He noted that in carrying out the corporation’s mandate, it required an effective collaboration with the judiciary.
Hassan said the collaboration was in view of the critical role the judiciary played in resolving disputes that often arose from revocation of banking licences, liquidation of failed banks and termination of liquidation activities.
”The corporation, since inception, has been confronted with many challenges such as misconception of its mandate and basic principles of deposit insurance.
”The seminar 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,” he said.
