NDIC demands stakeholders contribution towards Premium assessment system

By Matthew Denis

The Nigerian Deposit Insurance Corporation (NDIC) has appealed for inputs for critical stakeholders towards making the documents more robust and embracing.

This is contained in a statement signed by the Director of Communication and Public Affairs Department, Bashir Alhassan Nuhu and made available to NewsDirect on Sunday.

The statement reads ” the differential premium assessment system framework was reviewed to make it more risk sensitive and Account for significant development that takes place in the banking system since it adoption in 2008.

” The review was informed by the need to ensure that the framework conforms to the International Association Deposit Insurers (ADI) and other global best practices.

According to the Director the review is at consultation stage therefore it’s imperative for the corporation to solicit inputs adding that the exposure draft has been placed on the corporation website www.ndic.gov.ng for review.

The statement urged stakeholders to forward their inputs, comments and recommendations to NDIC Director of Insurance and Surveillance Department at [email protected] latest on 30th, June 2023.

The statement added NDIC adopted the Differential Premium Assessment System Framework (DPAS) in 2008 following the insurance of it framework in 2007 to differentiate premiums payable by insured Financial institutions based on their respective risk profiles.

” The DPAS was aimed at introducing fairness into the Premium Assessment process thereby encouraging effective risk management practices in insured Institutions and applying a risk differential approach in the deposit insurance system.

” The DPAS was also introduced to enable banks in the lower risks categories to pay relatively lower Premium rates and charges banks in the higher categories additional premium for their extra risk, incentive regulatory compliance and mitigate moral hazards.”