Nigeria Deposit Insurance To Adopt Risk-based Approach In Banks’ Premium

The Nigeria Deposit Insurance Corporation says it was reviewing its approach for determining the premium by banks to its Deposit Insurance Fund with a view to adopting a risk-based approach. <br />Managing Director of NDIC, Mr Bello Hassan explained NDIC had commenced the review of its approach to the determination of premium/contribution by banks to our DIF to a more risk-based approach to ensure that, the probability of the risk crystallising becomes a major factor in the pricing methodology of our premium going forward.” <br />The NDIC, in calculating premiums from deposit money banks, usually chose between adopting a flat-rate premium or a system that sought to differentiate premiums on the basis of individual-bank risk profiles.