Effective resolution of distressed banks, critical to depositors’ protection — NDIC

Effective resolution of distressed banks, critical to depositors’ protection — NDIC

By Ginika Okoye, Abuja.

 

The Nigeria Deposit Insurance Corporation (NDIC) says the effective resolution of banks in distress is critical to depositors’ protection.

 

The NDIC, on its official Twitter handle on Thursday, said that the effective resolution would also ensure the stability of the financial system.

 

The corporation described a pragmatic resolution plan as one put in place by regulators to facilitate the effective resolution of a distressed bank without any disruption or loss of the taxpayers’ money.

 

The NDIC said that the plan also served as a guide to regulators for achieving an orderly resolution, in the event that recovery measures were not feasible.

 

One of the NDIC’s mandates was to supervise banks, so as to protect depositors, foster monetary stability, while promoting an effective and efficient payment system.

 

The corporation also promotes competition and innovation in the banking system.

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