The Nigeria Deposit Insurance Corporation (NDIC) has signed a Memorandum of Understanding (MOU) with the Korea Deposit Insurance Corporation (KDIC) on a wide range of issues intended to facilitate the robust implementation of the Deposit Insurance System in their respective jurisdictions. Both institutions are key members of the International Association of Deposit Insurers (IADI).
The MOU was effected at an elaborate ceremony within the premises of the KDIC in Seoul, South Korea on the 7th of August, 2019. Mr. WI Seongbak, Chairman and President signed on behalf of the KDIC while Umaru Ibrahim, the Managing Director/Chief Executive (MD/CE) of the NDIC signed on behalf of the Corporation. The ceremony 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.
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.
After the signing of the MOU, the NDIC delegation led by the Board Chairman and MD/CEO, was hosted to knowledge and experience sharing sessions by their KDIC counterparts. The delegation 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. The delegation, was later hosted by the Nigerian Ambassador to the Republic of Korea, H.E. Amin Muhammad Dalhatu at the Nigerian Embassy building in Seoul.