The Nigeria Deposit Insurance Corporation (NDIC) said it is reviewing its Differential Premium Assessment System (DPAS) Framework, taking into consideration the input of critical stakeholders.
A statement by the Director of Communications and Public Affairs Department, Bashir Alhassan Nuhu, said the DPAS is being reviewed to make it more risk-sensitive and to account for significant innovations in the Nigerian banking sector since its adoption in 2008.
‘‘The review was informed by the need to ensure that the framework conforms to the recommendations of the International Association of Deposit Insurers (IADI) and other global best practices, said Nuhu.
He, however, explained that although the review is still at its consultation stage, it was necessary to have stakeholders’ input to help banks in the lower-risk categories to pay lower premium rates and charge banks in the higher-risk categories more.
‘‘Now that the review is at the consultation stage, it is imperative for the Corporation to solicit input from its critical stakeholders, adding that the exposure draft has been placed on the Corporation’s website, urging relevant stakeholders to send in their inputs.
The Differential Premium Assessment System (DPAS), was developed by the NDIC to differentiate premiums payable by Insured Financial Institutions based on their respective risk profiles.
