NDIC seeks ethical banking standards

Nigeria Deposit Insurance Corporation (NDIC) has expressed worries over the cases of abuse of extant regulations and ethical standard by banks in the country.

Managing Director/Chief Executive Officer of NDIC, Umaru Ibrahim who stated this appealed for effective collaboration between regulators and operators in the banking system for the establishment of sound ethics and professionalism in the banking industry.

Ibrahim, who refused to comment on the Presidential Panel plans to recover the  $7bn bailout money, made the call during a courtesy visit by the council members of the Chartered Institute of Bankers (CIBN), lead by its President and Chairman, Dr. Uche Olowu, said abuse of extant regulations and ethical standards have impacted negatively on the confidence level in the banking industry and the entire financial system.

He said such unethical breaches in illegal foreign exchange transfers have raised the need for a wake-up call for improved corporate governance and ethical behaviour by the banks.

Recall that that the Chairman of the Special Presidential Panel on Recovery of Government Assets and Properties’, Mr. Okoi Obono-Obla had earlier in the month, announced government’s ongoing investigations and plans to recover all bailout funds given to stressed banks in the wake of banking reforms during the time current Emir of Kano, Mallam Sanusi Lamido Sanusi was governor of the apex bank.

Meanwhile, the NDIC and the CBN through which the N620bn (about $7bn) bailout was lavishly given out to nine banks during the 2006 to 2008 banking shakeups have refused to make any comment concerning the recovery of the funds.