NDIC Gives Vote of Confidence to Banks  

The Nigeria Deposit Insurance Corporation (NDIC) says the banking sector is now immunized to shocks that may invade the economy and the financial system.

Despite Nigeria’s economic woes, including impending food shortages and rising inflation, NDIC noted that banks will no longer be vulnerable to economic and financial shocks.

Bello Hassan, Managing Director of NDIC made this known at a retreat for members of the Senate Committee on Banking, Insurance and other Financial Institutions with the NDIC, at Eko Hotels in Lagos.

Also Read: NDIC Reiterates Commitment To Financial Stability

Any change in fundamental macroeconomic variables or relationships that has a significant impact on macroeconomic outcomes and measures of economic performance, such as unemployment, consumption, and inflation, is referred to as an economic shock.

Hassan, who was represented by Mustapha Ibrahim, NDIC’s Executive Director (Operations), stated that effective risk-based management remained critical to a safe and sound financial system.

It is also worth noting that the NDIC and the Central Bank of Nigeria (CBN) both have very robust supervisory frameworks under the risk-based supervision format and its proactive.

He added that, to an extent, we attempt to anticipate all of these risks – macro, micro, domestically and globally and to address them continuously.