The deposit insurance guys say they always pay their taxes on time. NDIC boss Oludare Sunday stated the corporation strictly follows fiscal rules, remitting either twenty percent of its gross earnings or eighty percent of its net surplus to the federal government while submitting audited reports early. During a meeting with Armstrong Takang of the Ministry of Finance Incorporated, which holds a forty percent stake in NDIC, Sunday framed this compliance as essential for maintaining public confidence and fulfilling their mandate to protect depositors.
He argued their financial discipline is non-negotiable for a stable banking system, but flagged a major policy conflict. The federal government's fifty percent cost-to-income ratio rule, while being adhered to, is reportedly hampering its ability to build a sufficient Deposit Insurance Fund. Sunday contended this fund must be robust to pay out depositors quickly during bank failures without needing a bailout, pointing to international standards from the International Association of Deposit Insurers.
The NDIC is now seeking an official exemption from that cost rule to bolster its financial resilience. Takang responded positively, acknowledging their compliance and pledging MoFI's support in ongoing talks with the finance ministry, recognizing that a well-funded deposit insurer is critical for overall system trust. The engagement highlights the tricky balance between the corporation's duty to the government treasury and its primary role in safeguarding public deposits.
He argued their financial discipline is non-negotiable for a stable banking system, but flagged a major policy conflict. The federal government's fifty percent cost-to-income ratio rule, while being adhered to, is reportedly hampering its ability to build a sufficient Deposit Insurance Fund. Sunday contended this fund must be robust to pay out depositors quickly during bank failures without needing a bailout, pointing to international standards from the International Association of Deposit Insurers.
The NDIC is now seeking an official exemption from that cost rule to bolster its financial resilience. Takang responded positively, acknowledging their compliance and pledging MoFI's support in ongoing talks with the finance ministry, recognizing that a well-funded deposit insurer is critical for overall system trust. The engagement highlights the tricky balance between the corporation's duty to the government treasury and its primary role in safeguarding public deposits.
