By Nkechi Naeche, Nigerian Compass –

The Nigeria Deposit Insurance Corporation (NDIC) has said that it has concluded the audit of all Micro finance banks in the country. Speaking at the risk based supervision training for NDIC examiners held at Ijebu Ode, Ogun State,the Managing Director/Chief Executive Officer, Umaru Ibrahim, said that the list of wanting banks will be made public in a month time.

Confirming the completion of the special audit, he said the operators found wanting will face appropriate sanctions.

He said that the corporation had put machinery in place to resolve the crisis in the ten bailed out banks as well as the microfinance banks and Primary Mortgage Institutions (PMIs), adding that it will step up its debt recovery efforts by engaging more recovery agents, intensify an aggressive pursuit of court cases as well as devise better and more efficient system of reaching out to depositors and the payment of both insured and uninsured deposits.

He also called on bank examiners in the country to be more proactive in their responsibilities to ensure a safe and sound banking sector.

According to him, the risk-based approach to banking supervision training was imperative in the light of the recent developments in the industry, stating that the training would equip them with the knowledge and skills to evaluate banks’ risk profiles and risk management practices for effective assessment of banks’ safety and soundness.

He attributed the current crisis in the banking sector to jettisoning of corporate governance and paying little attention to risk management by banks, stressing that there was no way the industry could move forward if priority is not paid to risk profiles in banks.

The NDIC boss further explained that the corporation had always given priority to the training and retraining of its employees toward skill enhancement, adding that the corporation under the present dispensation has accorded priority to consolidated supervision, communication and report writing and risk management, among others.

Also speaking at the event, the Special Adviser to the CBN Governor on Banking Supervision, Mr. Kim Norris, said the risk based supervision was imperative for the sector in the light of the global financial crisis and recent developments in the industry.

He expressed satisfaction over the seriousness being extended to the consolidated risk based supervision by both regulators and banks, stating with the readiness of the examiners to learn, the industry will be better for it.