Bank Failures: Over 97% of depositors now covered – NDIC

Independent

Bello Hassan, the Manag­ing Director/Chief Execu­tive of the Nigeria Deposit Insurance Corporation (NDIC), has revealed that in the event of a bank failure in the country, above 97% of the bank’s depositors would be fully covered by the Cor­poration.

He noted that this is as a result of the steps the NDIC has taken, in line with its mandate, adding that the Corporation’s deposit in­surance coverage limits were now not only adequate but also robust enough to engender confidence in the nation’s banking system.

Mr. Hassan made this known in a key address at the 2021 Edition of the NDIC Editors Forum which took place on Saturday in Lagos.

He said: “Our key policy thrust is to scale up the de­posit insurance framework; timely support to insured institutions as and when required; faster and order­ly resolutions of failed in­sured institutions; as well as assistance to the monetary authorities in promoting stability in the banking system.

“In the area of Deposit Insurance as a distinct man­date of the Corporation, I am happy to note that from empirical statistics, the Cor­poration’s deposit insurance coverage limits are not only adequate but robust enough to engender confidence in our banking system.

“For instance, in 2016, 2017, 2018 and 2019, the total number of accounts in the deposit money banks stood at 83.0 million; 99.1million; 112.0 million and 128.4 mil­lion respectively. Out of these numbers, the N500, 000 coverage limit fully cov­ered 99.4%; 97.6%; 97.5% and 97.6% of accounts, respec­tively.

“The implication is that in the event of bank failure, above 97% of depositors would be fully covered by the Corporation.”

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