NDIC seeks tougher sanctions against insider abuse in banks

NDIC seeks tougher sanctions against insider abuse in banks

NDIC seeks tougher sanctions against insider abuse in banks

Corporation’s boss urges review of existing regulations
The Nigeria Deposit Insurance Corporation (NDIC) has condemned the rising rate of non-performing insider loans in various banks. It said this situation, if not checked could have negative consequences on the financial system.

Managing Director/Chief Executive of Alhaji Umaru Ibrahim expressed this concern while receiving the newly elected President & Chairman of Council of the Chartered Institute of Bankers of Nigeria (CIBN), Professor Segun Ajibola and his executive members who paid a courtesy call on the NDIC Senior Management in Abuja.

According to Ibrahim, the development poses credibility questions, capable of eroding public confidence in the banking system.He therefore called for strict compliance with the existing code of conduct and a review of the existing laws and regulations to provide stiffer penalties for directors who take advantage of their positions and failed to pay back their loans.

The NDIC CEO also observed with concern the practice of some banks to assign sensitive roles to casual staff; thereby exposing the banking industry to cases of fraud and forgeries.
Advising restraint, Alhaji Ibrahim urged banks to exercise caution so as not to create industrial unrest in the industry, he therefore called on the CIBN to intervene by advising its members on the aim of the rationalisation which should be to weed out bad eggs from the industry.

The NDIC boss emphasized that the corporation would continue to partner with the CIBN and other professional bodies towards achieving effective capacity building among its staff.

Prof. Ajibola expressed appreciation to the Corporation for positive contributions to the activities and programmes of the Institute and also pledged to table the matter at CIBN’s next meeting with banks’ CEOs with a view to addressing the issues.He stated that efforts were being put in place by the CIBN to enhance the capacity of bank staff, particularly in credit administration.

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