THE Managing Director/Chief Executive Officer of Nigeria Deposit Insurance Corporation , Alhaji Umaru Ibrahim, has said that the level of of non-performing insider loans in various banks have become worrisome.
For him the development does not bode well with the stability of the nation’s banking system.
Ibrahim, who spoke while receiving the newly elected President and Chairman of Council of the Chartered Institute of Bankers of Nigeria , Professor Segun Ajibola, said the development posed credibility questions which were capable of eroding public confidence in the banking system.
Ajibola had in company with some of his executive members paid a courtesy call to the NDIC senior management in Abuja.
Ibrahim called for strict compliance with the existing code of conduct and a review of the existing laws and regulations to provide stiffer penalties for directors who take advantage of their positions by failing to pay back their loans.
The NDIC boss observed that casual staff accounted for about 25 per cent of the banking industry workforce, adding that this portends a negative impact on the industry. Ibrahim noted with concern the practice of some banks that assign sensitive roles to casual staff, thereby exposing the banking industry to massive cases of fraud and forgeries.
Speaking on the recent staff rationalisation embarked upon by banks, Ibrahim urged banks to exercise caution so as not to create industrial unrest. He, therefore, called on the CIBN to intervene by advising its members on the aims of the rationalisation which was targetted at weeding out bad eggs from the industry.
The NDIC Chief emphasised that the corporation would continue to partner with the CIBN and other professional bodies towards achieving effective capacity building among its staff. He disclosed that 77 members of staff of the corporation 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 and graduate with dual certification; an MBA and Chartered Banker of Scotland. Already, 14 members of staff had graduated from the programme. He further requested the 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 in order to broaden the scope of professionalism in the banking industry.
In his response, Ajibola, expressed the appreciation of the CIBN to the corporation for its positive contributions to the activities and programmes of the Institute and its support towards the establishment of the CIBN Bankers House in Abuja. Ajibola also commended the corporation for its contribution in ensuring stability in the banking system.
The CIBN boss assured Ibrahim that the accreditation committee of the institute would soon visit the NDIC Academy.
He, however, appealed to the MD/CEO on the need for further collaboration with the institute on training and other issues of mutual interest.
