Effective resolution of distress banks critical to depositors’ protection — NDIC

The Nigeria Deposit Insurance Corporation (NDIC), says the effective resolution of banks in distress is critical to depositors’ protection.

The NDIC on its official Twitter handle on Thursday said the effective resolution would also ensure the stability of the financial system.

NDIC described resolution plan as one put in place by regulators to facilitate the effective resolution of a distressed bank without any disruption or loss of the taxpayers’ money.

It said the plan also served as a guide to regulators for achieving an orderly resolution in the event that recovery measures were not feasible.

The News Agency of Nigeria (NAN) reports that one of the Corporation’s mandate was to supervise banks so as to protect depositors, foster monetary stability; promote an effective and efficient payment system.

The Corporation also promotes competition and innovation in the banking system.