By Abimbola Ogunnaike
The Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) have commenced supervision of the banking sector to ensure the non-performing loan ratio remains below the maximum threshold set.
The Managing Director, NDIC, Bello Hassan, told lawmakers during a retreat to inform the legislature on the activities of the corporation, with the theme, “Deepening Deposit Insurance Knowledge for Effective Legislative Functions.”
According to Hassan, the Nigerian banking sector has exhibited great resilience, despite the difficulties facing the economy but has survived the onslaught.
The NDIC boss noted that currently, the non-performing loan ratio remains below the maximum threshold set by CBN and that the NDIC was working to ensure that it stays within that limit.
Hassan, however, noted that addressing such risks would be through collaboration and enhanced supervision and surveillance to ensure that the quality of risk assets remains very robust.
The retreat, according to him, is aimed at exposing the lawmakers to the NDIC laws, identifying impediments to the implementation of its mandate, as well as brainstorming with the management of the corporation on the way forward.
” Various measures are being put in place by the corporation and the CBN to ensure the banking sector remains sound and to ensure heightened surveillance to ensure that the quality of risk assets remains very robust,” the NDIC MD said.
The Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Mr Mukhial Abiru, in his response, said the lawmakers would support the NDIC in its oversight functions, lamenting that the depreciation of the naira has had an impact on the balance sheets of banks.
”The role of the NDIC is very important, the bank’s ratios are very good today, their liquidity ratio is very good and our understanding is that the average is about 41 percent when the required minimum is about 30 percent,” Abiru said.
