National Wire About Nigerians, Nigerian Business and Other Stories
The Managing Director and Chief Executive of Nigerian Deposit Insurance (NDIC), Hassan Bello, has tasked the appellate court on the need to fashion out a practice direction on failed banks matters relating to recovery of debts owed failed banks and prosecution of parties that may have contributed to the bank failure before Appeal Court in the domestic economy.
The NDIC boss made this remark at this year’s sensitization seminar for justices of the appeal court titled: Building Strong Depositors Confidence in Banks and Other Financial institutions through Adjudication of Disputes, held at Continental Hotels Victoria Island, Lagos.
Bello said, the theme was deliberately chosen to re-echo the huge responsibility placed on the corporation as Deposit Insurer and the need to collaborate with critical stakeholders such as the judiciary in ensuring safe and sound Financial system in Nigeria.
While noting the mandate of the corporation, as Deposit guarantee, bank supervision, failure resolution, and liquidation, Bello said that in discharging its functions ,especially resolution of banking distress,and liquidation of failed banks , some complex legal issues bordering on administration of Deposit Insurance may be brought before the lordships for determination of rights of parties.
He averred that proper understanding of the concepts and practice of deposits Insurance would enable the lordships to appreciate the legal issues involved in determining the cases expeditiously.
Accordingly, he argued that their pronouncements on these sensitive issues will set judicial precedents in the development of bank insolvency law and practice in Nigeria in the emerging legal jurisprudence.
Bello explained that the recent upwards review of maximum deposit Insurance coverage levels approved by the Interim Management Committee , which raised Deposit coverage of Deposit Money Banks (DMBs) and Subscribers of Mobile Money Operators (MMOs) from N500 ,000 to N5,000,000; and Payments System Service Banks(PSBs) and Primary Mortgage Banks (PMBs) raised from N500, 000 to N2,000,000 was to promote depositors confidence within the banking system.
While acknowledging the presence of the President of Court of appeal, Justice M.B Dongban-Mensem and other appeal court Justices present, Bello said that it was an eloquent testament of the judiciary to ensure a safe and sound banking for the country.
Previous Sensitization seminars had drastically reduced the challenge of liquidation litigation it experienced in the past; fostered better understanding of the roles of the corporation and provided opportunity for the justices and paper presenters and senior members of the to brainstorm on salient provisions of the failed Banks (Recovery of debts and Financial Malpractices in Banks) Act 1994.
He hoped that the end of the seminar, participants would have learnt something towards building of strong depositors confidence on banks and other financial institutions.
