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From Magnus Eze, Enugu
The Nigeria Deposit Insurance Corporation (NDIC) has said the new Central Bank of Nigeria (CBN) policy which pegs the minimum capital for commercial banks at N500 billion was in line with current global economic dynamics.
It also reiterated its unwavering commitment to promptly reimburse verified depositors of the 179 Microfinance Banks and four Primary Mortgage Banks which the CBN revoked their licenses in 2023.
Commercial banks under the new arrangement are required to maintain minimum capital levels of N500 billion, N200 billion, and N50 billion for international, national, and regional institutions, as well as N50 billion for merchant banks.
In addition, national and regional non-interest banks are required to maintain N20 billion and N10 billion respectively.
Managing Director/Chief Executive of NDIC, Bello Hassan who spoke at the special day of the corporation at the ongoing 35th Enugu International Trade Fair, said that this strategic recapitalization initiative was in line with President Bola Ahmed Tinubu’s administration’s urge to grow the nation’s economy to the ranks of $1trillion base economies.
He noted that the initiative will not only strengthen the banking system but also enhance the sector’s ability to withstand financial shocks, adding that the NDIC will continue to collaborate with the CBN in ensuring a seamless transition while safeguarding depositor’s interest.
“The NDIC plays a pivotal role in protecting depositors and contributing to the stability of the financial system and ensures the adoption of secured and prudent banking practices.
“Consequently, the NDIC instils public confidence by way of assurances to depositors that their funds will remain secure and accessible in the unfortunate event of a bank failure,” Hassan stated.
President of Enugu Chamber of Commerce, Mines and Agriculture (ECCIMA), Odeiga Jideonwo said that effort should be made to ensure that the effect of the new CBN policies does not create unnecessary panic and pressure on depositors and the entire Nigerian citizens.
“In this wise, permit me to commend CBN and of course NDIC, as key players in the financial sector, for the effort towards stability and near tranquillity in the banking/financial sector through their regulatory frameworks, despite the current challenges being experienced in Nigeria economic cycle which we are sure will soon be a thing of the past,” he said.
