The Nigeria Deposit Insurance Corporation (NDIC) says Nigerian banks are in good financial position to carry on banking activities.
Speaking at a sensitization of the 2015 Batch ‘A Stream 2′, National Youth Service Corps (NYSC) members at the orientation camp, Paiko in Niger state, deputy director, Research, (NDIC), Hashim Ahmad, said the corporation undertakes proper supervision of the banks in the country as insurer to ensure they remain healthy.
“Nigerian Banks are relatively healthy in line with global standards. It is unlikely announcing the healthy status of our banks in the public but we normally say in aggregate and I think our annual report will soon be released and be made available for public scrutiny”, he said
The NDIC Deputy Director, Research said, “We don’t particularly say Bank A or B is distressed. We are simply saying that on aggregate basis we will tell you the industry is this or that, but we undertake supervision of the banks as insurer as you know, no insurer will sit back and allow his risk to crystallize before he wakes up.
“We are embarking on the supervision of Banks to ensure they remain safe and sound,” he said, explaining that the agency also undertakes the stress resolutions of most Banks.
“Any Bank that is identified as distressed or in difficult operational situation is normally turned over to the NDIC for management and so we manage the affected Banks until such a time that it is deemed to be fit or safe and sound to continue in business,” he said.
Hashim also told journalists that, “In the course of doing that we take over the management and control of the Banks. We can go to that extent of managing the Bank until such a time we think it is able to stand on its feet and then we hands it back to its owners.
“The NDIC as the sole liquidator of banks in Nigeria undertakes liquidation when all other avenue to resuscitate the purchase of the bank fails. The Central Bank of Nigeria (CBN) will then revoke the license and hands the bank over to NDIC for liquidation widening off of the affairs of the Bank,” he explained.
