Reps, NDIC seek stronger depositor protection after bank recapitalisation

Speaking at the retreat, themed “Strengthening the Financial Safety Net in an Era of Banking Sector Recapitalisation and Fintech Innovation,” Chairman of the Committee, Ahmadu Jaha, said stronger bank capital must be supported by effective supervision, sound corporate governance and robust depositor protection.“Stronger capital must be complemented by stronger supervision, effective deposit insurance, sound corporate governance, enhanced crisis management arrangements, and improved coordination among members of the financial safety net,” he said.“While recapitalisation enhances the resilience of financial institutions, it must be complemented by effective regulation, sound governance practices, strong risk management frameworks and good compliance culture, all attributes of a reliable financial safety net,” he said.