By Tony Obiechina, Abuja
The Nigeria Deposit Insurance Corporation (NDIC) in has signed a Memorandum of Understanding (MOU) with the Korea Deposit Insurance Corporation (KDIC) on a wide range of issues aimed at boosting the implementation of the Deposit Insurance System in their respective jurisdictions.
According to a statement from the NDIC Communications & Public Affairs Department in Abuja on Wednesday, the MOU was affected in Seoul on August 7, 2019 by both institutions which are key members of the International Association of Deposit Insurers (IADI).
The statement, signed by Mohammed Kudu Ibrahim for the Director, stated that Mr. WI Seongbak, Chairman and President of the KDIC signed for his organization, while Umaru Ibrahim, the Managing Director/Chief Executive (MD/CE) of the NDIC signed on behalf of the Corporation.
The ceremony. according the statement was witnessed by the Chairman of the Board of the NDIC Mrs. Josephine Ibironke Sokefun and some of her colleagues who were on a study tour to the KDIC.
The statement said, “Under the terms of the MOU, both parties noted the increasing globalization and complexity of large financial institutions and the unique challenges they portend for regulatory authorities and committed themselves to the promotion of communication, enhancement of existing levels of cooperation; provision of support, mutual understanding, and collaboration on areas related to the development of the deposit insurance systems in the two jurisdictions.
“The MOU also provided for effective international working relationship between both agencies along with the enhancement of their roles in financial regulatory initiatives and policy deliberations.
“There will also be periodic exchange of staff between both institutions and bilateral meetings on regular basis towards enhancing mutual understanding that promotes the development of the Deposit Insurance System (DIS) in both Nigeria and South Korea”.
Reflecting on the visit, the NDIC MD/CE described the study tour and MOU signing as a deeply rewarding experiencing given the insight gained by both deposit insurers from the various technical sessions held during the visit.
The delegation afterwards interacted with faculty members of the KDIC Global Academy. The NDIC team also visited the Financial Services Commission (FSC) where it was hosted by the 1st Deputy Governor and the Financial Supervisory Services (FSS) where a technical knowledge sharing session was also held with their Management team.
The sessions covered topics such as supervisory early warning system, risk based premium assessment system, public awareness strategies and consumer protection. Other areas covered included deposit pay out processes, failure resolution, Korean Financial Industry Oversight Framework amongst others.