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Nigeria Deposit Insurance Corporation (NDIC) says that total assets of non-interest banks and windows have grown from ₦66.96 billion in 2015 to ₦186.46 billion as of June 30, 2019.
Managing Director of the Corporation, Mr Umaru Ibrahim who made this known in Abuja on Thursday at the Sustainable Islamic Finance Conference quoted an Islamic Financial Services Board (IFSB) 2019 Stability Report said, “emerging risks facing Islamic banks now, and beyond 2019, appear to stem from underlying structural economic weaknesses, inflationary trends and depreciating currencies- all the developments that could potentially destabilise liquidity, raise non performing financing and erode capital.
“Foreign currency risks also remain a significant concern for regulators and Islamic banks alike. Equally, there exist structural challenges around Liquidity management and legal accommodation in terms of existence and mechanisms for dispute resolution.”
“Whilst we express our regret on the closure of Stanbic IBTC Islamic banking window, we welcome the establishment of TAJ bank and hope more of such will follow.”
However, the share of total assets of non-interest banking segment against total assets of the banking industry stood at a paltry 0.49% as of June 30, 2019.
“Similarly, total deposits were reported at ₦121.68 billion, or 0.53% of the industry total during the same period.
