The Nigeria Deposit Insurance Corporation (NDIC) said the banking sector has effectively positioned itself and is now immunized to shocks that may invade the economy and the financial system.
According to Bello Hassan, Managing Director of NDIC, the financial sector with its robust and effective frameworks will resist any economic shock that may invade the system.
He made this known at a retreat for members of the Senate Committee on Banking, Insurance, and other Financial Institutions with the NDIC, at Eko Hotels in Lagos.
An economic shock is any change in fundamental macroeconomic variables or relationships that has a significant impact on macroeconomic outcomes and measures of economic performance, such as unemployment, consumption, and inflation.
Hassan, who was represented by Mustapha Ibrahim, NDIC’s Executive Director (Operations), stated that effective risk-based management remained critical to a safe and sound financial system.
The supervisory framework describes the principles, concepts, and core processes that OSFI uses to guide its supervision of federally regulated financial institutions (FRFIs).
“The NDIC and the Central Bank of Nigeria (CBN) have a very robust supervisory framework under the risk-based supervisory format the risk-based approach is actually proactive.
For the most part, we try to anticipate all these risks – Macro, micro, domestically, and globally – to address them continuously.
The supervisory function of CBN is structured into five departments 1. Banking Supervision Department 2. Consumer Protection Department 3. Financial Policy and Regulation 4. Other Financial Institutions Supervision Department 5. Payments System Management Department