IADI Africa Regional Committee Workshop Will Engender Strategies For System-wide Crisis Preparedness – Hassan

The Managing Director and Chief Executive Officer of Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan has stated that the IADI Africa Regional Committee Workshop will engender strategies for system-wide crisis preparedness and resolution options in promoting financial stability in the region.

Hassan stated this in his remarks during the opening ceremony of the IADI Africa Regional Committee Workshop in Abuja.

The workshop which has the theme, Normality in Turbulent Period: The Stabilising Role of Deposit Insurance according to Hassan, will create a veritable platform for knowledge and experience-sharing in fulfilling the vision and mission of IADI.

His words: “I am optimistic that at the end of the this workshop, strategies for system-wide crisis preparedness and resolution options in promoting financial stability in the region would emerge.

He further noted that both the 2007-09 global financial crisis and Covid-19 pandemic exposed the increasing relevance of deposit insurance in stabilising turbulent banking systems and as buffer for financial system stability”.

He also revealed that the crisis led to the review of some of the design features of explicit deposit Insurance system in many countries to accommodate emerging developments in the domestic financial system.

The NDIC boss further stated that the successes recorded by the Corporation in the execution of its mandate would not have been possible without the support and collaborative efforts of other financial safety-net players in Nigeria like the CBN, the Federal Ministry of Finance, Budget and National Planning and other members of FSRCC.

According to Hassan, it was in appreciation of the fact that deposit Insurance is a knowledge-based service that the ARC decided to the organize workshop to sensitise staff of member institutions to issue and challenges of Early Detection and Timely intervention.

In her goodwill message, Mrs. Ronke Sofekun, Chairman, Nigeria Deposit Insurance Corporation (NDIC) Board of Directors noted that the presence of global experts from both fiscal, monetary, supervisory and regulatory agencies and Deposit insurers in gathering like this, is a manifestation of their commitment towards having robust and sustainable system that can detect problem early enough and manage crisis adequately in the banking system to foster financial system stability.

The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele in his goodwill message lauded the collaboration between the deposit insurance institutions and the CBN which has engendered resilience in the financial system in the country despite the continued weakness of the global economic growth and the challenges posed by the Covid-19 pandemic and the Russia-Ukraine war and enjoined the participants to take advantage of the workshop to enhance their regulatory roles.

Earlier, the African Regional Committee Chairman and Chief Executive Officer, Kenya Deposit Insurance, Corporation (KDIC) as well as Mr. David Walker, Secretary General, International Association of Deposit Insurers (IADI) delivered their welcome addresses remotely from both Nairobi, Kenya and Basel, Switzerland respectively.

The Hon. Minister of Finance, Budget and National Planning, Zainab Ahmed in her key note address noted that Deposit Insurers play an effective role during crisis by way of performing the roles and responsibilities as stipulated in their mandates.

She further stated that the efficient supervision of the insured institutions to promote sound risk management which reduces likelihood of failure and effective resolution of failing banks. These she noted has helped to improve public confidence, protect the stability of the Nigerian financial system.

According to the Minister, the Federal Ministry of Finance has implemented a set of difficult but necessary reforms as well as engage International partners to help the country navigate an extremely challenging economic environment.

Her words, “That to a great deal, in collaboration with CBN, NDIC and other agencies, explains why the country’s Gross Domestic Product (GDP) rose to 3.54% year-on-year in the second quarter of GDP growth, since the recession recorded in Q3, 2020.

The Nigerian economy has so far shown signs of resilience in the face of economic headwinds like the conflict between Russia and Ukraine, which affected the global economy. The opening ceremony of the workshop has in attendance some members of the National Assembly.

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