By Abdullahi Alhassan, Kaduna
The Nigeria Deposit Insurance Corporation (NDIC) said it has put mechanism as an important means to gain public confidence in the banking system and achieve financial and banking stability, which is one of the most important elements of economic development, especially in developing countries.
Chairman Board of Directors NDIC, Mrs. Roke Sokefun made the remarks at a one-day retreat in Kaduna for Senate Committee on Banking, Insurance and other financial institution with the Theme: “Financial System Stability: A Panacea to Economic Growth and Development, The Role of the NDIC”
The Role of the NDIC could not have been more appropriate at this critical period considering the recent happenings in the global and national economy occasioned by COVID-19 pandemic. It is generally agreed that the stability of the financial system in a developing nation like ours, is inextricably linked with economic growth and societal welfare.
The Board Director further said” banks are rapidly employing fintech to innovatively deliver financial products and services. Consequently, the nature and scope of banking risks is significantly changing over time with the growing adoption of fintech.
His words:-“Bank customers are moving away from using cash and cheques and relying more on electronic banking to complete financial transactions. In response to this shift, financial institutions continue to develop more web portal and mobile apps. Although these apps and portals are aimed at increasing convenience as well as enhancing the customer experience, they also pose unique risks in terms of cybersecurity breaches”.
In his Keynote address at the event, Chairman Senate Committee on Banking, Insurance and other financial institution, Senator Uba Sani, said “this retreat is timely as it will afford us the opportunity to reflect deeply on the challenge of stabilizing the financial system in a distressed economy, adding that the role of the NDIC in this process will be brought to the fore and it’s experience, particularly since the COVID- 19 pandemic, would be shared and lesson draw, strategies would be mapped out to further NDIC and reposition it to contribute even more effectively to our economic recovery efforts.
Said he;-“This is task we must Carry out with total dedication and Commitment, NDIC is a strategic institution that the National Assembly must do all in it’s power to ensure it performs optimally.
“As we all know financial system stability reinforces trust in the banking system ,the importance of financial system stability cannot be gainsaid as it is an essential requirement for measuring price stability, policy goals of the Central Bank of Nigeria and also for the healthy development economy”.