The recent increase in deposit insurance by the Nigeria Deposit Insurance Corporation (NDIC) has received the applause of the Association of Enterprise Risk Management Professionals (AERMP).
The association commend NDIC’s commitment to proactive risk management and applaud its unwavering dedication to protecting depositors and fostering financial stability.
In a press release made available to CEM, AERMP noted that increased coverage to depositors, enhances confidence and mitigates the potential systemic risks associated with bank runs and market instability.
The statement reads;
“The Association of Enterprise Risk Management Professionals (AERMP) extends its heartfelt commendation to the Nigeria Deposit Insurance Corporation (NDIC) for its proactive and strategic initiative in enhancing the maximum deposit insurance coverage levels across licensed deposit-taking financial institutions.
“In a press conference held on Thursday, 2nd May 2024, Bello Hassan, the Managing Director/Chief Executive of NDIC, announced a significant increase in the maximum deposit insurance coverage for Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs), and subscribers of Mobile Money Operators (MMOs). This commendable step marks a pivotal moment in bolstering depositor protection and fortifying the stability of the financial system in Nigeria.
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“Recognizing the paramount importance of risk mitigation in today’s dynamic financial landscape, NDIC’s decision to adjust the maximum deposit insurance coverage levels demonstrates a keen understanding of the evolving risks facing depositors and financial institutions alike. By providing increased coverage to depositors, NDIC not only enhances depositor confidence but also mitigates the potential systemic risks associated with bank runs and market instability.
“The Governing Council and management of AERMP commend NDIC’s commitment to proactive risk management and applaud its unwavering dedication to protecting depositors and fostering financial stability. This forward-thinking approach exemplifies NDIC’s leadership in the realm of risk mitigation and sets a commendable precedent for regulatory bodies worldwide.
AERMP while calling to other regulatory bodies do toll the path of the NDIC, affirmed it’s support for the body NDIC in its endeavor to establish a stable and resilient banking landscape for all parties involved.
“As advocates for sound risk management practices, AERMP stands in solidarity with NDIC in its mission to create a secure and resilient banking environment for all stakeholders. We urge other regulatory bodies to follow NDIC’s example and prioritize risk mitigation measures that safeguard the interests of depositors and preserve the integrity of the financial system.”
The Association of Enterprise Risk Management Professionals (AERMP) is a leading professional organization dedicated to promoting excellence in enterprise risk management practices. Comprised of seasoned professionals and thought leaders in the field of risk management, AERMP provides education, resources, and networking opportunities to empower risk management professionals worldwide. Visit www.aermp.org to learn more.
