The Nigeria Deposit Insurance Corporation on Monday in Kaduna criticised the frequent high rating of banks in the country by some local and international organisations.

The NDIC described such high falutin ratings as mere appellations. The Managing Director and Chief Executive Officer, NDIC, Mr. Ganiyu Ogunleye, who debunked the ratings of the banks, argued that they did not correspond with the indices in the possession of the NDIC. Ogunleye, who delivered a five-page keynote address at the 2007 NDIC’s Strategic Session held at Hamdala Hotel, Kaduna, wondered where the banks and the organisations conferring the high ratings obtained their statistics.

He said it had become a common phenomenon for the banks to award themselves such titles as ‘the biggest’, ‘the most consolidated,’ ‘the one with the largest shareholders fund,’etc., noting that competition for size is becoming worrisome. Ogunleye expressed dismay that in spite of the challenges posed by the post – consolidation regime in the banking sector, the chief executive officers of banks in the country had not yet released the consequences of the targets allocated to them.

He said the NDIC would want the CEOs to run the banking businesses in a safe and sound manner.
“ Value creation has to go with the interest of shareholders and depositors,” he insisted.
The NDIC boss, who drew a parallel between Nigerian banks and the City Bank of the United States, said the size of the bank had over 40 examiners but when the CEO was not measuring up to expectations, he was asked to step aside.

The NDIC, he said, would carry out its statutory mandate without let or hindrance as the challenges posed by the current circumstances in the financial sector would determine its relevance and future.
According to him, the corporation is confronted with major challenges, which include low response of depositors of banks that failed before 2006, prostrated litigation by directors/shareholders of failed banks and inability to recover debts owed failed banks.

He listed other challenges as ensuring sound governance of insured institutions; inaccurate financial reporting by insured institutions; implementing risk-based supervision; and implementing Enterprises Risk Management. Against this background, he said, the NDIC had identified strategic objectives that would enhance the corporation’s capacity to discharge its mandate. He listed the key areas as enhanced ability to anticipate, react to and manage risks, improve deposit insurance awareness, maintain efficient and cost-free operations, review the premium assessment system and implement a service charter, among others.

The NDIC boss said the two-day strategic session was being organised for top management staff of the corporation to fine-tune their skills and update their knowledge about the global challenges in the financial services sector. The Director, Corporate Development Department of the NDIC, Hellen Jekelle- Mohammed said the gains of the strategic session are expected to be internalized by the workers and management of the Corporation to enable it carry out its mandate efficiently and effectively.

Mohammed who delivered a welcome address, said unlike the previous retreats and workshops for the top management staff, the strategic session provided the most comprehensive and detailed road map for the future successes of the NDIC.