NDIC Decries Abuse of Extant Regulations, Ethical Standards by DMBs

By James Emejo in Abuja

The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, Wednesday decried instances of abuse of extant regulations and ethical standards by deposit money banks (DMBs), adding that this has impaired confidence in the banking industry and the financial system in general.

He particularly cited the recent involvement of some banks in illegal forex transfers — in collusion with MTN Nigeria — as a wake-up call for better corporate governance and ethical behaviour by the banks.

Speaking when he received the executive members of the Chartered Institute of Bankers (CIBN) led by its President, Dr. Uche Olowu, who paid him a courtesy visit, Umaru however stressed the need for effective collaboration between regulators and operators in the banking system for the establishment of sound ethics and professionalism in the banking industry.

He assured the CIBN president of his resolve to strengthen collaboration with the institute in the enforcement of good corporate governance among banks as well as the promotion of high ethical standards and professionalism.

In a statement by the Head, Communication and Public Affairs, NDIC, Mr. Mohammed Kudu Ibrahim, the NDIC boss reinforced the primary responsibility of regulators to uphold strict compliance with international best practices and ethical standards in order to promote effective risk management and sound corporate governance in the banking industry.

This, he said, is in line with the corporation’s drive towards protecting depositors and enhancing public confidence in the financial system.

Olowu however attested to the recognition of the NDIC Academy by the International Association of Deposit Insurers (IADI) as a world class institution in providing capacity building for the banking industry.

He said this recognition and the CIBN’s active collaboration with the corporation to entrench ethical standards was a key driver towards effective service delivery in the industry.

He therefore emphasised the need to extend the collaborative efforts to joint research and knowledge-based events to enhance public awareness about the role of deposit insurance in financial system stability.

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