The Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) have commenced supervision of the banking sector to guarantee that non-performing loan ratio continues below the maximum threshold set.
This was revealed during a retreat themed “Deepening Deposit Insurance Knowledge for Effective Legislative Functions.” to lawmakers.
The Managing Director, NDIC, Bello Hassan noted that the Nigerian banking sector has exhibited great resilience, despite the difficulties facing the economy but has survived the onslaught.
He noted that currently, the non-performing loan ratio remains below the maximum threshold set by CBN and that the NDIC was working to ensure that it stays within that limit.
NDIC however noted that addressing such risks would be through collaboration and enhanced supervision and surveillance to ensure that the quality of risk assets remains very robust.
The retreat is aimed at exposing the lawmakers to NDIC laws, identifying impediments to the implementation of its mandate, as well as brainstorming with the management of the corporation on the way forward.
Hassan stressed that, ” Various measures are being put in place by the corporation and the CBN to ensure the banking sector remains sound and to ensure heightened surveillance to ensure that the quality of risk assets remains very robust.
The Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Mukhial Abiru, reiterated that lawmakers would support the NDIC in its oversight functions, lamenting that the depreciation of the naira has had an impact on the balance sheets of banks.
He added that,”The role of the NDIC is very important, the bank’s ratios are very good today, their liquidity ratio is very good and our understanding is that the average is about 41 percent when the required minimum is about 30 percent.
