By Chioma Obinagwam
In an effort to effect speedy resolution of appeal matters on failed banks, in addition to achieving a sound financial system, the Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has urged the judiciary to implement Practice Direction for the Court of Appeal.
Hassan said this during a sensitization seminar, tagged, ‘Building Strong Depositor Confidence in Banks and Other Financial Institutions through Adjudication of Disputes,’ organized by the NDIC for Honourable Justices of the Appellate Court in Lagos on Monday.
The MD, stressed the importance of having a Practice Direction to ensure the quick and effective resolution of appeal matters concerning the recovery of debts owed by failed banks, as well as the prosecution of individuals responsible for the failure of their banks.
He stressed the need for collaboration with key stakeholders such as the judiciary to maintain a safe and sound financial system in Nigeria.
The NDIC boss emphasised that Banking is a unique commercial venture that operates primarily with depositors’ funds rather than the funds of the business owners, pointing out the inherent risks associated with banking and the importance of regulating and supervising banks to protect depositors’ funds as Deposit insurance plays a crucial role in providing depositors with access to their funds in case of a bank failure.
The NDIC’s mandates include Deposit Guarantee, Bank Supervision, Failure Resolution, and Liquidation, with the objective of enhancing confidence in the financial system and ensuring the protection of depositors.
Hassan highlighted the complex legal issues that may arise in resolving banking distress and liquidating failed banks, underscoring the need for a proper understanding of deposit insurance concepts by the judiciary.
He acknowledged the judiciary’s role in interpreting laws and adjudicating on legal matters, emphasizing the importance of collaboration to ensure the effectiveness of the Deposit Insurance System.
The sensitization seminar is part of the NDIC’s efforts to engage the judiciary in achieving its mandate and promoting depositor confidence in the banking system.
The seminar has facilitated discussions on the Failed Banks (Recovery of Debts and Financial Malpractices in Banks) Act 1994 as a key tool for recovering debts owed by failed banks.
The NDIC’s commitment to promoting depositor confidence is evident in the recent increase in deposit insurance coverage levels for various types of banks in Nigeria.
Hassan commended the President and all the Justices of the Court of Appeal for their participation in the seminar, noting the positive impact of such programmes in reducing liquidation-related litigations and improving the resolution of failed banks.
He pointed that the NDIC remains dedicated to collaborating with the judiciary to ensure the stability of the financial system and protect depositors’ interests.
(News shelve)
Leave a comment