Bank deposits protection, ensure confidence in banking system – Appeal Court President

President of the Court of Appeal, Justice Zainab Bulkachuwa said on Wednesday that the protection of bank deposits will ensure public confidence in the country’s banking system as well as promoting financial system stability.

Bulkachuwa was speaking in Abuha, at a sensitization seminar for Justices of the Court of Appeal, organised by the Nigeria Deposit Insurance Corporation (NDIC)

She said deposit insurance scheme was a critical component of the financial safety net arrangement, which the main objective is to protect depositors, adding that, the scheme will ultimately ensure confidence in the banking system, promote financial stability and economic growth.

Bulkachuwa urged judges to discharge the task placed on them, adding that judiciary is a major stakeholder in the scheme.

In his speech, the Managing Director and Chief Executive Officer other Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, said the inability of the corporation to fully discharge its core mandate, has been as a result of various challenges.

Ibrahim said the theme of the seminar, “The Role of Deposit Insurance in Promoting Financial System Stability”, said the corporation since inception, has been confronted with challenges which include the misconception of its mandate and basic principles of Deposit Insurance System among Nigerians.

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Ibrahim, who was represented by the Executive Director Operations, Prince Aghatise Erediauwa, noted that the “Phenomenon had been responsible for challenges such as, unclaimed deposits following bank closure, judgments being obtained against the corporation for liabilities of closed banks as well as attachment of corporation’s assets and garnishee of its corporate accounts in bid to enforce judgments obtained against closed banks, among others unpleasant experiences ‘

He asserted that the sensitization exercise in collaboration with the Court of Appeal is tilted towards remedying the situation, adding “That the corporation considers this collaboration a valuable investment in the development of Nigeria’s financial system.

“Consequently, in course of deliberations at the seminar, some of the challenges associated with Deposit Insurance Law and Practice in Nigeria will be highlighted and we shall be looking forward to drawing as much as we can from your rich knowledge and experience,” the NDIC boss told the Justices of the Court of Appeal.

He observed that legal issues involving deposit insurance system are very critical to the achievement of the corporation’s statutory mandate of deposit guarantee, supervision and distress resolution.

He stated further that for the seven years that the sensitization has run, it has been a worthwhile and “its positive outcomes are obvious.”

Ibrahim said the relationship between the corporation and the judiciary is predicated on the desire to ensure continuous enlightenment on the Justices’ knowledge on Deposit Insurance System and law.