Nigeria Deposit Insurance Corporation (NDIC) has stated that bank failures are caused by officers entrusted to look after the institutions.
NDIC Managing Director, Mr Bello Hassan, disclosed this during a capacity-building workshop for law enforcement agencies themed, “Effective investigation and prosecution of banking malpractices that led to the failure of banks.
He noted that the investigation and prosecution of failed banks’ offences was provided for under various legislations such as the: NDIC Act, 2006, the Failed Banks Act, 2004, the Banks and Other Financial Institutions Act (BOFIA), 2020 and the Companies and Allied Matters Act (CAMA), 2020, among others.
Hassan said: “As you all know, the human element is the greatest culprit in bank failure. It has been said over and over, that banks do not on their own fail, rather they are destroyed and brought to their knees by acts of officers entrusted to look after the institutions.
“Consequently, it is the responsibility of the authorities to ensure that the effect of the actions of these culprits is mitigated by bringing such people to book to serve as a deterrent to others.”