The Nigeria Deposit Insurance Corporation (NDIC) has revealed limited understanding and misconception of the Deposit Insurance System (DIS) as the major causes of unclaimed deposits in liquidated banks in Nigeria.
This was contained in a statement titled ‘Why pool of deposits in closed banks remain unclaimed – NDIC’, signed by the Director, Communication & Public Affairs Department, Bashir A. Nuhu and released on Friday December 18, 2020.
In the statement, The Executive Director (Corporate Services) of NDIC, Hon (Mrs) Omolola Abiola-Edewor, explained that unclaimed deposits in closed banks is a global challenge to Deposit Insurance System.
She posited that the collaboration of Federal High Court judges and the National Judicial Institute is required to enhance stability of the financial system.
Similarly, she stated that this has prompted NDIC to continuously collaborate with the Judiciary and other stakeholders in promoting sound knowledge and understanding of the deposit insurance system over the years.
Abiola-Edewor added that judgments against the Corporation for liabilities of failed banks under liquidation is another challenge confronting the Corporation.
The Executive Director said: “effective resolution of legal issues affecting the administration of the deposit insurance system was critical to the enhancement of safety and soundness of the banking system.”
“The Corporation would be looking forward to drawing from the rich knowledge and experience of the Federal High Court judges on ways of addressing these challenges”, she explained further.