NDIC Promotes Recipe For Sound Banking, Economic Dev
- Blames insider abuses, financial malpractices for banks’ failure
BY CHINYERE OBIORA, LAGOS – The Nigerian Deposit Insurance (NDIC) says consistent checks on insider abuses and financial malpractices that promote bank failure remain the best option to maintain depositors’ confidence in Nigeria‘s banking system
Consequently, the Corporation insists that ensuring a safe and sound banking environment necessary for economic development will be difficult without implementing safeguards to address these unhealthy practices.
The Managing Director and Chief Executive of NDIC, Hassan Bello, who stated this position at the 2024 capacity building workshop for Law Enforcement Agencies in Lagos, said to ensure public confidence in the national financial system, Law enforcement agencies must unite to fight insider abuses and malpractices which remain the major causes of bank failure in the country.
In a keynote address tagged; “Effective Collaboration as a Strategy in the Fight against Insider Abuses in Banks and Other Financial Institutions in Nigeria”, Bello said NDIC, as a key participant in the financial safety net, is consistently fighting to check these debilitating problems in the nation’s banking system.
Bello, represented by the Director of Communication and Public Affairs, NDIC, Nuhu Bashir, further said; ”A safe and sound banking environment is essential for financial system stability which is the bedrock of economic development.”
He said the workshop is primed to enhance the capacity of law enforcement agencies in investigating and prosecuting financial crimes and ensuring greater collaboration with NDIC.
While acknowledging the collaborative efforts between NDIC and law enforcement agencies, Hassan implored them to be vigilant in detecting and prosecuting financial crimes, noting that existing collaboration had yielded positive results in the recent past.
The NDCI boss listed the success story to include 14 prosecution cases that are ongoing in various courts of law; 18 investigations being conducted by the Financial Monitoring Intelligence Unit(FMIU); eight cases with the Economic and Financial Crimes Commission (EFCC); and nine concluded investigations with the Federal Ministry of Justice for advice and prosecution.
While commending the law agencies for their readiness to assist the Corporation in tackling corruption within the financial system, Hassan pointed out the challenges posed by technological advancements and cybercriminal activities, emphasising the need for Law enforcement officers to be adequately equipped with the necessary skills to effectively carry out their duties in the nation’s ecosystem.
He noted that regulatory and enforcement agencies such EFCC, CBN, Police force CID, SFU, and Federal Ministry of Justice had participated in the previous workshop with huge success and impact recorded in executing NDIC’s mandate of protecting depositors and contributing to the stability of the financial system through effective supervision of insured institutions,
According to the NDIC Chief Executive, the current workshop was skilfully and carefully crafted to re-echo stakeholders’ resolve at previous workshops to unite in the fight against the menace of insider abuses and financial malpractices which ”if not tackled, is capable of eroding public confidence in our banking system”
The Corporation, whilst bearing in mind the positive impact of such collaboration will continue to strive to enhance the synergy between all in the area of law enforcement relating to investigation and prosecution of financial malpractices.
Backing regular workshops and engagements as necessary to enable law enforcement officers to understand the dynamics of the operating environment, Bello said; “The Authorities are becoming more proactive with policies and examinations/investigations to ensure that the banks/financial institutions strengthen their risk management practices to prevent loss of funds and maintain depositors’ confidence in the banking system.
”This workshop is therefore among the steps taken to provide a platform for the Agencies concerned to sharpen their skills, share ideas, and be well-equipped to face the challenges.”
He urged representatives of various law agencies to participate actively in the deliberations and engage the facilitators in robust discussions so the workshop can produce actionable measures to maintain public confidence in the ecosystem.
