NDIC cautions bank directors on failure to pay back loans

The Managing Director/Chief Executive of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim has expressed concern over the increasing wave of non-performing insider loans in various banks and its consequence on the stability of the nation’s banking system.

He called for strict compliance with the existing code of conduct and a review of the existing laws and regulations to provide stiffer penalties for Directors who take advantage of their positions and failed to pay back their Loans.

Alhaji Ibrahim expressed this concern while receiving the newly elected President and Chairman of Council of the Chartered Institute of Bankers of Nigeria (CIBN), Professor Segun Ajibola and some of his Executive Members who paid a courtesy call on the NDIC Senior Management in Abuja. According to him, the development had posed credibility questions which were capable of eroding public confidence in the banking system.