Amaka Obiefuna

In a world where financial systems are now inextricably linked, robust cooperation is required to ensure financial system stability, and by extension growth and stability of the global economy, the Board Chairman, Nigeria Deposit Insurance Corporation (NDIC), Mrs. Ronke Sokefun, has said.

 Mrs. Sokufun who said this at the International Association of Deposit Insurers (IADI)/Africa Regional Committee (ARC) workshop and Annual Meeting today in Abuja hosted by the Nigeria Deposit Insurance Corporation (NDIC), noted that “it is against this backdrop that we need to keep working through forums like the IADI and other collaborating agencies to share experiences, strengthen our supervisory tools, monitor the effectiveness of insured institutions’ contingency planning and crisis management framework as well as ensure our readiness for timely, and prompt intervention to engender financial system stability.”

She maintained that the NDIC has for a long time since its establishment in 1988 collaborated with other international standard-setters and deposit insurers, adding that NDIC has collaborated in capacity development with the IADI itself, the arc members, the financial stability institute, the US FDIC, the Islamic financial services board and several other international agencies.

The corporation, she said, has memorandum of understanding (MoU) to share information and on capacity development with deposit insurance agencies of Ghana, Poland, South Korea, Taiwan and Uganda.

Mrs Sokufun said “It is in the spirit of such collaboration that this workshop was organised so as to serve as a forum to dissect pertinent issues, share experiences, compare notes and elevate our understanding of the role of deposit insurers in: early detection & timely intervention; contingency planning & crisis management; crisis simulation to strengthen operational resilience; and contingency planning framework for a safer, and more resilient financial system, that is supportive of sustainable economic growth in each jurisdiction.”

She said the theme of the workshop, “Normality In Turbulent Periods: The Stabilising Role Of Deposit Insurers,” is no doubt topical in the light of the dynamics and emerging threats facing the financial system in recent times and the implications for deposit insurers.

The NDIC Boss said that the stability of global financial system is essential to economic growth, amongst others factors, adding that the global economic growth continued to weaken, as indicated by the trajectories of many macroeconomic indicators.

This weak performance, she noted, was fuelled by the lingering effects of the COVID-19 pandemic and the truncation of nascent recovery from the pandemic-occasioned recession by the Russia-Ukraine war. 

She said although the Nigerian banking system has shown resilience despite the challenges posed by the pandemic, the operating conditions for businesses is becoming more challenging as a consequence of the Russia-Ukraine war, adding that “Notwithstanding these developments, the Nigerian banking system remained healthy overall as the capitalisation level is above the prudential requirement and the non-preforming loans ratio is also within the requirement at the end of second quarter 2022.”