The Nigeria Deposit Insurance Corporation (NDIC) has implemented its reduced 0.35 per cent deposit premium rate for all deposit money banks (DMBs) operating in the country.
The new premium would lead to further reduction in the total amount paid as premium to the corporation by banks.
Between 2012 and 2014, the NDIC granted a total premium rebate of N192.6 billion to the DMBs, following the gradual reduction from 0.5 to 0.4 per cent within the peroid.
The NDIC, in September 2014, announced the planned reduction of the premium from 0.40 per cent to 0.35 per cent as part of efforts toward contributing to financial system stability and promoting public confidence in the banking industry. The managing director/chief executive, NDIC, Alhaji Umaru Ibrahim, during the corporation’s 25th anniversary press briefing in September had disclosed that the board of the corporation had granted further relief to the DMBs at its last meeting held in September 2014.
Also speaking during the last Financial Correspondents Association of Nigeria (FICAN) workshop held in December 2014, in Katsina State, Ibrahim added that the board had reduced the new insurance premium rate which would take effect from January this year. The NDIC, said in a statement at the weekend, signed by Hakeem Bakare for its head, Communication and Public Affairs, that the new premium rate became effective from this month.
This premium reduction was initiated to consolidate on the gains achieved by the corporation’s migration from the Flat Rate Premium System (FRPS) to the Differential Premium Assessment System (DPAS). The DPAS approach takes into consideration the risk each bank poses to the system and encourages banks to adopt sound risk management practices. Leadership
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