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Banks can withstand impact of oil price decline – NDIC

By on November 28, 2014

The Managing Director of the Nigeria deposit insurance corporation (NDIC) Alhaji Umaru Ibrahim has disclosed that Nigerian banks can survive the impact of the current falling price on the economy.
Ibrahim also said with the federal government’s response to the situation, banks would emerge even stronger after the challenges.
Speaking yesterday at the 35th Kano International Trade Fair held, the NDIC boss, represented by the Director Assets Management, Alhaji  Bashir Dada assured depositors that part of the reasons why banks’ risk management system were strengthened was to avert the impact of situations like the current slide in crude oil on the financial system.

“We have to learn from 2008-2009 financial crisis that emanated from the United States of America, which later spread across other parts of Europe and parts of the world. I am sure that our banks are in good position to survive current falling price of oil”, he said.
He also acknowledged that the Nigerian economy was facing challenges due to the oil price slide.
He was however optimistic that Nigeria was not expecting any failure in the banking industry and maintained that the future of Nigerian banking industry would be positive.
“We are only calling on all stakeholders to try their best and play their part as required without let or hindrance. They are of course doing their best now, we are still interested in having tighter belts,” he added.
On payment to bank depositors, the NDIC boss said the corporation had been doing its best in that regard.
He therefore called on depositors to come forward and claim their monies from the corporation. He however said so many depositors had been reluctant to claim their payments.
Umaru added that NDIC, as a deposit insurer was effectively responding to all emerging issues in the global financial system, particularly in areas of financial literacy, consumer protection, financial inclusion, sustainable banking and extension of deposit insurance coverage to depositors of non-interest banks.

 

[ThisDay]