The Managing Direc
tor of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim has called on Nigerian banks to beef up their capital base through recapitalization to mitigate any negative situations in the banking sector.
Umaru disclosed this in Kaduna recently while addressing financial journalists.
The NDIC boss said that a lot banks need to recapitalize to over come the daunting challenges that they faced, especially in respect of high interest rate.
He added that the banks are facing liquidity issues, unemployment, dwindling revenues and profits, high expectations of quality services from depositors and high expectations from investors.
Umaru said raising non performing loans and strains in liquidity are some of the challenges confronting the nation’s banking sector, but assured banks customers that NDIC as a regulatory body would continue to ensure that the banking system remains sound and safe.
He said that NDIC would follow a proactive and dynamics process to ensure that the deposit money banks, the primary mortgage banks and microfinance banks continue to be reasonably creative and innovative in their products and services.
The NDIC boss warned Nigerians against the MMM scheme, adding that there are other institutions licensed by the Central Bank of Nigeria (CBN) or insured by the NDIC for Nigerians to patronise.
He said NDIC would not relent in calling Nigerians and in sensitising them about the dangers of patronising wonder banks not insured.