The implementation of effective fiscal and monetary policy measures is critical to addressing unexpected impacts of the COVID-19 pandemic on the financial system.
The Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation, Umaru Ibrahim, stated this in a speech delivered on his behalf by Galadima Gana, Director, Insurance Surveillance Department at the NDIC during a webinar titled, ‘The Impact of COVID-19 on the Banking System with a Special Focus on Non-Interest Financial Institutions,’ organised by the NDIC in collaboration with the Islamic Financial Service Board.
Gana explained that the aim of the webinar was to bring critical stakeholders in the non-interest banking sector to, among other issues, evaluate the Central Bank of Nigeria’s interventions in the sector.
The Secretary General of the IFSB, Dr. Bello Lawal Danbatta, disclosed that since its establishment in 2003, IFSB had remained committed to the implementation of prudent regulations to promote financial system stability for non-interest financial institutions.
He said in light of the global impact of the COVID-19 pandemic on the financial system, it was 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 units of various NIFIs in Nigeria including Taj Bank Plc, SunTrust Bank Plc, Tijara Microfinance Bank, Jaiz Bank Plc and Sterling Bank Plc.
Among recommendations made at the event are the need for regulators, especially the CBN, to address liquidity challenges faced by the NIFIs on investible instruments particularly short-term investible windows, and adoption of social financing in collaboration with religious bodies that have the mandate to collect zakat (Islamic obligatory charity) and protect Waqf (Islamic charitable endowment) that could be channeled towards projects targeted at poverty alleviation.
