The Nigeria Deposit Insurance Corporation (NDIC), on Tuesday said it has, like the Central Bank of Nigeria (CBN), been admitted to full membership of the Islamic Financial Services Board (IFSB) headquartered in Kuala Lumpur, Malaysia,
The board, according to a statement by Mohammed Kudu Ibrahim, spokesman for the corporation, conveyed the decision via mail dated Tuesday, December 6, 2018 and subsequently posted on the website of the IFSB.
The decision to admit the NDIC was taken at the 33rd meeting of the IFSB Council, hosted by the Islamic Development Bank Group (ISDB), on 6 December 2018 in Jeddah, Kingdom of Saudi Arabia.
IFSB is an International Standard-setting organisation for the Islamic Financial Services Industry that promotes the soundness and stability of the global industry, by issuing global prudential standards and guiding principles for Islamic Banking, Islamic Capital Markets and Takaful (Insurance) Sectors.
According to IFSB, members of the institution are classified into three categories, namely Full Member, Associate Member and those classified as observers. As a full member of the Board, the NDIC has voting rights – a status which is only available to the financial sector supervisory authorities of its member countries.
The board complements the activities of the Basel Committee on Banking Supervision (BCBS), International Organisation of Securities Commission (IOSCO) and International Association of Insurance Supervisors (IAIS), by introducing new, or adapting existing international prudential standards consistent with Islamic Shari’ah principles and recommending same for adoption by the relevant Regulatory Authorities.
The IFSB had in March, 2018 invited the NDIC to its membership. The institution is currently developing work plans on standards for the Supervisory Review Process of multiple Islamic Banking products that could further strengthen the capacity of the NDIC to continue the robust supervision and provision of guidelines to operators of Non Interest Banks such as Jaiz Bank; Deposit Money Banks (DMBs) with and Micro-Finance Banks (MFBs) with Non Interest Banking windows.