The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has revealed that the International Monetary Fund (IMF) and the World Bank would be using the existence and capacity of deposit insurance as a measure of financial stability.
Ibrahim while speaking with journalists during the International Association of Deposit Insurers (IADI) Africa Regional Committee Workshop in Lagos, yesterday, said the move by the IMF and the World Bank was to promote the importance of deposit insurance in the continent.
With many African countries operating without a deposit insurance institution, he said the global financial? institution had brought to fore the need and importance of deposit insurance and “everybody is now aware of the need to enhance? the confidence of depositors and do everything possible to ensure the safety and stability of the financial industry particularly the banking sector.”
He noted that the IMF and the World Bank based on a representation made to them by the International Association of Deposit Insurance (IADI) have now acknowledged the importance of deposit insurance and in fact, they would be using the existence of deposit insurance? in any country? as a mark of financial stability.
Also speaking at the workshop with the theme:“Deposit Insurance Systems and Designs,” the Chief Executive of Zimbabwe Deposit Protection Corporation(ZDPC) and the chairman of the IADI Africa region, John Chikura, lamented that many African countries did not have concrete arrangements for deposit insurance.
“We have very few countries in Africa that have already set up deposit insurance.
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