Managing Director of Nigeria Deposit Insurance Corporation, NDIC Alhaji Umaru Ibrahim has reiterated the importance of financial intermediation in the banking system, noting that is key to economic growth.

He made this observation while delivering a welcome address at the Business Day annual banking conference in Lagos.

‘The banking system promotes economic growth through the process of intermediation by efficiently allocating funds mobilized from the surplus economic growth and development’.‘It is instructive to note that banks have over the years played this intermediation role to facilitate the growth of the economy. However, a lot needs to be done as credit being extended to the real sectors of the economy such as agriculture, manufacturing, solid minerals is meagre, short tenured and at high interest rates,’ he added.

He however argued that the role of regulators on the other hand, is to provide enabling environment through the formulation of policies and guidelines that could facilitate the smooth functioning of the financial system. ‘Regulators in the Nigerian financial services industry could be said to have over the years played this role creditably well through introduction of different reform measures aimed not only at ensuring the stability but also in promoting the growth and development of the economy,’ he stated.

He remarked that NDIC has been involved in the resolution and liquidation of failed insured financial institutions, as the only agency charged with the responsibility of winding-up of the affairs of failed deposit-taking financial institutions in Nigeria.

Over the years, the corporation has made substantial payment to depositors of failed Deposit Money Banks, Micro-finance Banks and Primary Mortgage Banks.