The Nigeria Deposit Insurance Corporation, NDIC, has canvassed for jail sentence for all Directors of troubling banks in order to sanitize the banking system.
The NDIC Managing Director/CEO, Umaru Ibrahim, made this call at the Public Hearing for the Amendment of the BOFIA Act 2004 towards the Repeal and Re-enactment of the Bill to BOFIA 2020 organised by the Senate Committee on Banking, Insurance and Other Financial Institutions at the National Assembly in Abuja.
In his proposition, Ibrahim also proposed for criminalisation of banks’ directors obtaining loans from the institutions under any arrangement either collaterized or unsecured.
A press release by the corporation’s Director, Communication and Public Affairs Department, Sunday Oluyemi, which made public Ibrahim’s proposals at the hearing read in part: “Directors of banks should be held for they are personally liable without any limitation for the causes of the failure of their banks where they have been found to be negligent in managing the bank.
“The imposition of penalties and persecution of various offences to serve as a deterrent to officers and directors of banks and will ensure that the banking industry ensures compliance with available laws and regulation in order to avoid paying stiff penalties.”
The corporation also proposed the express prohibition of insider loans/criminalising insider loans by making it an offence punishable with imprisonment and fine for directors of licensed banks to obtain credit facilities from their own banks, whether such credit facilities are secured or not.