The Nigeria Deposit Insurance Corporation (NDIC) has unveiled plans to increase the deposit insurance coverage for customers of Primary Mortgage Banks operating in the country.
Alh. Umaru Ibrahim, managing director/chief executive, NDIC, dropped the hint in Abuja while delivering a keynote address at a sensitization workshop for operators of PMBs.
The workshop, with theme “Developing and implementing sustainable effective risk management in PMBs in Nigeria” was organized by the NDIC in its continued quest to promote safe and sound banking practice.
The NDIC as an insurer, reimburses depositors of all PMBs up to a maximum limit of N200,000 per depositor in the event of failure of such mortgage institution.
The N200,000 per depositor, which took effect from 2010, represents an increase of 100 per cent over the earlier N100,000 when the coverage was first extended to the sector in 2006.
But Umar said since the PMBs seems to carry more risks and pay more insurance premium than micro finance banks, there is need to increase the corporation’s coverage from the current N200,000 per depositor.
He, however, failed to provide the amount for the new deposit insurance cover being planned by corporation.
He said: “Going forward, we are going to review the insurance coverage for PMBs which is currently N200,000 and we are thinking why not segregate that sector different from what obtains in micro finance banks given the huge risks that you carry and the quantum of premium that you pay.