The implementation of effective fiscal policy measures is critical to addressing the unexpected impact of the Coronavirus Disease on the financial system.
The Managing Director/Chief Executive of Nigeria Deposit Insurance Corporation, Umaru Ibrahim, stated this in a speech delivered on his behalf by the Director, Insurance Surveillance Department, NDIC, Mr. Galadima Gana, at the webinar entitled ‘The Impact of COVID-19 on the Banking System with a Special Focus on Non-Interest Financial Institutions’ organised by NDIC in collaboration with the Islamic Financial Service Board.
He described the webinar as a crucial platform for stakeholders in the industry to examine and analyse the issues affecting operations in the Non-Interest Banking sector that had been impacted by the pandemic, to proffer effective solutions and ensure stability of the financial system.
Gana explained that the aim of the webinar was to bring critical stakeholders in the NIB sector to, among other issues, evaluate the Central Bank of Nigeria’s interventions in the sector in terms of enhancing financial inclusion, gain insight into consumer behaviour in light of the recent Sukuk issuance as well as highlight global interventions such as the Islamic Development Bank’s Social Welfare Sukuk.
The Secretary General of IFSB, Dr. Bello Danbatta, disclosed that since its establishment in 2003, the IFSB had remained committed to the implementation of prudent regulations to promote financial system stability for Non Interest Financial Institutions.
According to him, in the light of the impact of COVID-19 on the financial system, it is critical for industry operators to strictly monitor their credit, market and operation risks for operational resilience, as well as come up with a coordinated policy response for both domestic and international financial institutions.
Presentations were delivered by managing directors and heads of unit of various NIFIs in Nigeria, including Taj Bank Plc, SunTrust Bank Plc, Tijara Microfinance Bank, Jaiz Bank Plc and Sterling Bank Plc.
Members of the academia from across the country, including Ahmadu Bello University, Zaria, and University of Lagos also served as panelists at the webinar.
Participants tabled their concerns and recommendations in a communiqué issued at the end of the event.
Highlights of the recommendations include the need for regulators, especially the CBN, to address the liquidity challenges faced by NIFIs on investible instruments, particularly short-term investible windows.
