Trading

NDIC warns public against patronising wonder banks

The Nigeria Deposit Insurance Corporation, NDIC has appealed to members of the public to stop patronizing wonder banks which offer mouthwatering interest rates to dupe unsuspecting public of their hard earned monies in the name of investment.

The Managing Director and Chief Executive of NDIC, Umaru Ibrahim made the appeal on the occasion of NDIC’s special day at the ongoing Enugu International Trade Fair.

Ibrahim noted that these wonder banks are neither licenced by the Central Bank of Nigeria nor are they under the NDIC deposit insurance scheme.

He reiterated that the NDIC will not rest on it’s oars in pr-otecting depositors through prompt opera¬tional responses to novel developments in the banking system as they evolve.

” I therefore call on the general public especially traders and businessmen to always save money in licenced banks where the savings are protected by the NDIC”.

Ibrahim however noted that the Nigeria Deposit Insurance Corporation, NDIC and the Central Bank of Nigeria, CBN have been taking steps to strengthen the operations of the Microfinance Banks MFBs with a view to making them relevant to the needs of the Small and Medium Enterprise, SMEs.

” The MFBs have been re-categorised into units, states and National MFBs with different capital requirements. In addition, the Corporation and the CBN are financing the development of the National Microfinance Banks Unified Information Technology, NAMBUIT platform designed to address the challenges of technology in the operations of MFBs”.

Ibrahim noted that NDIC, being a critical component of the Nigerian Financial Safety-Net, the public policy objective of the Corporation is the protection of depositors of licenced banks as well as promoting public confidence in the financial system.

While lauding the efforts and consistent initiative of the Enugu Chamber of Commerce Industries Mines and Agriculture, ECCIMA to support the Federal Government’s strategy for attaining sustainable growth and fulfilling it’s promise of lifting millions of Nigerians out of poverty through the development of the SMEs.

The NDIC Boss said that the problems of credit constraints and managerial incompetence in the Nigeria SME sector could also be overcome with a good corporate governance structure in place.

Earlier in an address, President of ECCIMA, Emeka Nwandu encouraged the CBN through its regulatory framework, to make the work of NDIC easier by ensuring that the chances of bank failures is reduced to the barest minimum and guarded against especially to save depositors going through hallowing experiences.

Nwandu commended the CBN and the NDIC as key players in the financial sector, for the stability and near tranquility in the banking/ financial sector through their regulatory frameworks, despite the current challenges being experienced in Nigeria economic cycle.

Source: Voice of Nigeria