By Cynthia AloFollowing the completion of bank recapitalisation exercise, the Nigeria Deposit Insurance Corporation (NDIC) and the House of Representatives Committee on Insurance and Actuarial Matters have moved to strengthen Nigeria’s financial safety net to ensure prompt protection of depositors in the event of bank failures.
The move came as over 60 members of the House committee met with the NDIC, Wednesday, in Lagos to examine the implications of the recapitalisation exercise, and growing risks associated with fintech innovation.
Speaking at the stakeholders’ retreat with the theme, “Strengthening the Financial Safety Net in an Era of Banking Sector Recapitalisation and Fintech Innovation, Chairman of the committee, Ahmadu Jaha, said stronger bank capital must be matched with stronger supervision and effective depositor protection.
He said: “Stronger capital, however, must be complemented by stronger supervision, effective deposit insurance, sound corporate governance, enhanced crisis management arrangements, and improved coordination among members of the financial safety net.”
Jaha said the rapid expansion of financial technology had also created new risks requiring continuous legislative attention.
