NDIC boss debunks financial distress in banks

THE Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, has called on members of the public to ignore rumours being circulated that some banks were in financial distress.

A statement by the NDIC spokesman, Mr Hadi Birchi on Thursday in Abuja, said Ibrahim debuked th rumour during a visit by the Alumni Association of the National Institute (AANI), Abuja chapter.

It said the rumour circulated through text messages and social media was to de-market those banks and destabilise depositors’ confidence in the banking system.

The statement said the corporation had over the years played a very critical role towards ensuring that banks were safe and sound through effective supervision of the banks.

It added that financial and technical assistance were given to deserving financial institutions to avoid failure of banks.

The statement said that in spite of the challenges facing some of the banks, the corporation in collaboration with the Central Bank of Nigeria, was monitoring development to ensure the safety and security of depositors’ money.

Ibrahim also announced the corporation’s plan to establish a Centre for Financial and Economics Studies to train interested members on essential areas of financial and economic management.

There were reports of financial distress in some money deposit banks like Sky Bank and Heritage Bank, with cases of panic withdrawals by customers.

The CBN came out to say that examination report and analysis from market watchers and International Credit Rating Agencies showed that in spite of global economic challenges, Nigerian Banking System remained strong.