Business NDIC to Review Insurance of Mortgage Banks



The Nigeria Deposit Insurance Corporation (NDIC) says it will review the insurance coverage it provides for Primary Mortgage Banks (PMBs) to ensure effective operations of the sector.

The NDIC Managing Director, Alhaji Umaru Ibrahim, made the disclosure at the opening of a two-day workshop for PMBs on Monday in Abuja.

``Going forward, we hope to review the insurance coverage that we do provide, you are aware that right now it is N200,000 in case of any failure.

``We are thinking why not segregate slightly from what is obtained in the Micro Finance Banks (MFB), given the huge portfolio and risks you carry.

``And also in return, given the quantum of premium that you give,’’ he said.

According to him, the corporation is also reviewing the basis of premium of the PMBs in the country.

He said that instead of using the flat rate which was the initial practice, the corporation would introduce risk-based premium assessing system.

This, he said, was obtainable with the Money Deposit Banks.

``That way, we will be able to promote safer and best practices and in the process, the best manned and managed institutions will have less premium burden on them,’’ he said.

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