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The Nigeria Deposit Insurance Corporation, NDIC, is calling for measures that will ensure early detection of financial crisis in the banking sector. Umaru Ibrahim, managing director, NDIC, said the fabric of the global financial stability is threatened by monetary policy normalisation in some notable economies.
Ibrahim, who spoke at the International Association of Deposit Insurers, IADI, Africa Regional Committee, ARC, workshop in Lagos, said the monetary policy normalisation may result into sharp volatility and disruptions in financial markets. Another crisis is the proliferation of digital currency such as Bitcoin as well as the activities of Fintech in general.
“Rising exposure of emerging markets to reversal of foreign portfolio inflows and US Dollar appreciation with the growing risk of protectionism and ongoing trade wars between the United States and the rest of the world – China, North America and Europe – could degenerate with negative implications for the global financial system stability,” he said.
Ibrahim said through the failure resolution mechanisms of NDIC, it had so far closed 52 deposit money banks, DMB, out of which 49 are currently in liquidation while the remaining are involved in litigations challenging the revocation of their licence by the CBN. “In the case of other deposit taking financial institutions, a total of 187 Microfinance banks, MFBs, and 42 Primary Mortgage Banks, PMBs, are currently in liquidation.
– Oct. 11, 2018 @ 14:19 GMT |
Tags: NDIC seeks New Rules to tackle Financial Crimes
