The Nigeria Deposit Insurance Corporation (NDIC) has said that effective resolution of banks in distress as critical to guaranteeing depositors’ protection in the country.
The corporation, on its official Twitter handle on Thursday, tweeted that the effective resolution of lender’s crisis would also ensure the stability of the financial system.
According to the tweet, developing resolution plan as one put in place by regulators to facilitate the effective resolution of a distressed bank without any disruption or loss of the taxpayers’ money remained important.
In addition, the NDIC maintained the plan also served as a guide to regulators for achieving an orderly resolution in the event that recovery measures were not feasible.
By virtue of the provisions in its enabling Act, the corporation is empowered to supervise banks for the purposes of protecting depositors, fostering monetary stability; promoting an effective and efficient payment system, as well as encouraging competition and innovation in the banking system.
