The Nigeria Deposit Insurance Corporation has called on the regulators and operators in the financial industry to establish sound ethical standards in the banking industry.
Managing Director and Chief Executive of NDIC, Umaru Ibrahim, while speaking during the courtesy visit by Executive members of the Chartered Institute of Bankers of Nigeria, led by the President and Chairman of Council, Dr. Uche Olowu, said there was the need for effective collaboration between regulators and operators in the banking system for the establishment of sound ethics and professionalism in the industry.
The NDIC boss lamented that instances of abuse of extant regulations and ethical standards impacted negatively on the confidence in the banking industry and the entire financial system in general. He cited the recent involvement of some deposit money banks in illegal forex transfers as a wake-up call for better corporate governance and ethical behaviour by the banks.
Speaking further, the MD/CE assured the CIBN President of his resolve to strengthen collaboration with the institute in the enforcement of good corporate governance among banks as well as the promotion of high ethical standards and professionalism.
He stressed that it was the primary responsibility of regulators to uphold strict compliance with international best practices and ethical standards in order to promote effective risk management and sound corporate governance in the banking industry.
This is in line with the Corporation’s drive towards protecting depositors and enhancing public confidence in the financial
system.
The CIBN President and Chairman of Council, Dr.Olowu, attested to the recognition of the NDIC Academy by the International Association of Deposit Insurers as a world class institution in providing capacity building for the banking
industry.
He said this recognition and the CIBN’s active collaboration with the Corporation to entrench ethical standards, was a key driver towards effective service delivery in the industry. He therefore emphasized the need to extend the collaborative efforts to joint research and knowledge-based events to enhance public awareness about the role of deposit insurance in financial system stability.
According to Olowu, the active participation of the Corporation in the activities of the council as well as its role in the nation’s economic development informed the Council’s visit to formally invite the NDIC MD/CE as a special guest and resource person at the event.
