NDIC urges strict sanctions for non- performing insider loans

NDIC urges strict sanctions for non- performing insider loans
July 25 10:12 2016

The Nigeria Deposit Insurance
 Corporation, NDIC, has expressed concern over the increasing
figure of non-performing insider
loans in banks.
The corporation has therefore directed
banks to impose strict sanctions
on defaulters.
According to  a statement
issued on Sunday in Abuja by the
Head, Communication and Public
Affairs of NDIC, Hadi Birchi the
Managing Director, Umaru Ibrahim
expressed the concern when the
newly elected President, Chartered
Institute of Bankers of Nigeria
(CIBN), Segun Ajibola, paid him a visit in the office.

According to Ibrahim, the
development had posed credibility
questions which were capable of
eroding public confidence in the
banking system.
He called for strict compliance
with the existing code of conduct
and a review of the existing laws
to provide stiffer penalties for
directors of banks who are guilty
of the act.

The NDIC boss also decried the
casualisation of workers in the
banking industry, adding that the
development has a negative
impact on the system.
According to him, casual staff
accounted for about 25 per cent
of the banking industry
workforce.
He noted with concern the
practice whereby some banks
assigned sensitive roles to casual
staff; thereby exposing the
banking industry to cases of fraud
and forgeries.

Speaking on the recent staff rationalisation
embarked upon by banks, Ibrahim
enjoined the banks to exercise caution so as
not to create industrial unrest in the industry.
He therefore called on the CIBN to intervene
by advising its members on the aim of the
rationalisation, which should be to weed out
bad eggs from the industry.
Ibrahim said that the corporation would
continue to partner with the CIBN and other
professional bodies towards achieving
effective capacity building among its staff.

The NDIC boss also disclosed that 77 members
of its staff were currently undergoing the
Bangor/CB MBA programme which
commenced three years ago.
The Bangor/CB MBA programme is an
initiative of the NDIC, the CIBN and the
Bangor University, Scotland, where staff of
the corporation undergo up to 24 months
training programme.
“They graduate with dual certification, an
MBA and Chartered Banker of Scotland, and
14 members of staff have already graduated
from the programme,’’ he said.
Ibrahim urged CIBN to fast track the
accreditation of the Corporation’s Training
Academy and the introduction of the Deposit
Insurance System (DIS) in the institute’s
curricula to broaden professionalism in the
industry.

The CIBN President had earlier appreciated
the corporation for its positive contributions
to the activities and programmes of the
institute.
He commended NDIC for its support towards
the establishment of the CIBN Bankers House
in Abuja and for its contribution in ensuring
stability in the banking system.
Ajibola assured  Ibrahim that the
accreditation committee of the institute would
soon visit the NDIC Academy.

He appealed to the NDIC boss to further
collaborate with the institute on training and
other issues of mutual interest.
On staff casualisation in the industry,
Ajibola pledged to table the matter at CIBN’s
next meeting with banks’ CEOs with a view to
addressing the issues.
He also stated that efforts were being put in
place by the CIBN to enhance the capacity of
bank staff, particularly in credit
administration.

(NAN)