NDIC to Develop Framework for Non-Interest Financial Institutions

The Nigeria Deposit Insurance Corporation has announced that it will develop a framework for insuring deposit liabilities of non-interest financial institutions in the country.

The NDIC, in a statement on Tuesday, noted that the successful take-off of the non-interest banking was being undertaken by Ja’iz Bank, Stanbic IBTC and Sterling Bank.

The corporation, however, said their deposit liabilities were hitherto not covered under its Deposit Insurance Scheme.

According to the statement, the public policy objectives of the framework are based on public interest, which seeks to provide corresponding protection to holders of non-interest financial products similar to that of conventional banks.

The objectives are given as depositor protection against loss in the event of failure of any non-interest bank; to engender public confidence and enhance resilience of non-interest financial institutions; to encourage competitiveness of non-interest financial institutions; to help to contain the cost of resolving failed non-interest banks and provide an orderly failure resolution mechanism; and to promote and contribute to the stability of Nigeria’s financial system.