Emma Ujah, Abuja Bureau Chief
The Nigeria Deposit Insurance Corporation (NDIC) has called for input into the Differential Premium Assessment System (DPAS) Framework review.
It said in a statement in Abuja, yesterday, that such input from critical stakeholders was to make the document more robust and all- embracing.
The corporation, in the statement issued by the Director, Communication and Public Affairs Department, Bashir Nuhu, explained that the reviewe would also make the DPAS more risk-sensitive and account for significant developments that had taken place in the Nigeria banking system since its adoption in 2008.
It added that the review was informed by the need to ensure that the framework confirms to the recommendations of the International Association of Deposit Insurers (IADI) and other global best practices.
“The review is at consultation stage. It is imperative for the corporation to solicit input from its critical stakeholders, adding that the exposure draft has been placed on the Corporation’s Website,” it said.
The corporation urged stakeholders to forward their input, comments and recommendations to the Director, Insurance and Surveillance Department.
Recall that the NDIC adopted the Differential Premium Assessment System (DPAS) in 2008 following the issuance of its framework in 2007 to differentiate premiums payable by Insured Financial Institutions based on their respective risk profile.
The DPAS was aimed at introducing fairness into the premium assessment process, encouraging effective risk management practices in insured institutions and applying a risk differential approach in the deposit insurance premium assessment of insured financial institutions.
The framework was also introduced to enable banks in the lower risk categories 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 hazard.