The Nigeria Deposit Insurance Corporation (NDIC) on Sunday gave June 30 as deadline for inputs from stakeholders to the recent review of its Differential Premium Assessment System (DPAS) Framework.
The Director, Communication and Public Affairs Department of the corporation, Bashir Nuhu, said the inputs from critical stakeholders in the country’s financial sector were important to make the final document more robust, comprehensive and all embracing.
Nuhu said the deposit insurance regulatory authority in the financial sector embarked on the review of the DPAS framework adopted since 2008 to bring it up to date with current realities and make it more sensitive to risk as well as account for significant developments in the country’s banking system.
Also, Nuhu said the review of the DPAS was informed by the need to ensure that the framework conformed with the recommendations of the International Association of Deposit Insurers (IADI) and other global best practices and standards.
“Now that the review is at consultation stage, it is imperative for the Corporation to solicit inputs from its critical stakeholders,” Nuhu said, adding that the exposure draft of the document has been placed on the Corporation’s Website, www.ndic.gov.ng for review.
Urging stakeholders to forward their inputs, comments and recommendations to NDIC Director, Insurance and Surveillance Department on aliyuam@ndic.gov.ng latest by June 30, 2023, he said this would enable the process to be concluded on schedule.
The DPAS was adopted in 2008 following the issuance of its framework in 2007 to differentiate premiums payable by Insured Financial Institutions based on their respective risk profiles.
The aim of DPAS was to introduce fairness in the premium assessment process, encourage effective risk management practices in insured institutions, and application of a risk differential approach in the deposit insurance premium assessment of insured financial institutions.
Again, the DPAS was also introduced to enable banks in the lower risk categories in the financial sector to pay relatively lower premium rates, charge banks in the higher risk categories additional premium for their extra risks, incentivise regulatory compliance and mitigate moral hazards.
