NDIC tasks security agencies in tackling bank failures

Law enforcement agencies have been urged to diligently investigate and prosecute malpractices in the banking sector. The charge was given by the the Managing Director of the Nigeria Deposit Insurance Corporation, NDIC, Bello Hassan, during a capacity-building workshop for law enforcement agencies. Hassan said the corporation and law enforcement agencies have roles to play in […]

Law enforcement agencies have been urged to diligently investigate and prosecute malpractices in the banking sector.

The charge was given by the the Managing Director of the Nigeria Deposit Insurance Corporation, NDIC, Bello Hassan, during a capacity-building workshop for law enforcement agencies.

Hassan said the corporation and law enforcement agencies have roles to play in mitigating against bank failures.

“It is clear that bank failure is not a development that is welcomed by the Corporation. As you all know, the human element is the greatest culprit in a bank failure. It has been said over and over, that banks do not fail on their own, rather they are destroyed and brought to their knees by an act of officers entrusted to look after the institutions.

“Consequently, it is the responsibility of the authorities to ensure that the effect of the actions of these culprits is mitigated by bringing such people to book to serve as a deterrent to others,” he said.

Hassan noted that the NDIC as a key player within the Financial Safety Net System in the country has the mandate to administer a Deposit Insurance System through the guarantee of the payment of deposits up to the maximum insured amount in the event of failure of the licensed deposit-taking institution.

He added that NDIC collaborates with the Central Bank of Nigeria to monitor the health of the insured financial institutions through on-site and off-site supervision, ensure that failing and failed insured institutions are resolved in a timely and efficient manner; and liquidate insured financial institutions whose license were revoked by the CBN, to ensure the orderly exit of such institutions from the banking system.

The Director of Public Prosecutions of The Federation, (DPPF), Muhammed Abubakar, said the workshop would have a positive impact on the ability and capacity of law enforcement agencies in their efforts at stemming the menace of banking malpractices in the country.

He added that the theme of the workshop underscores the continuous need for stakeholders to be committed to the exigencies of combating banking malpractices in the country.

“The integrity of our banking system is central to the socio-economic wellbeing of our dear country. Therefore, the need for the effective regulation of the sector through the formulation of legal framework and enforcement mechanism cannot be overemphasized,” he said.

The chairman of the Economic and Financial Crimes Commission, EFCC, Abdul Rasheed Bawa, who was represented by the Lagos Zonal Commander of the Commission, Ahmed Ghali, commended the NDIC for the initiative, adding that it would help the CBN and other major stakeholders in the banking system to detect fraudulent acts with ease.