Off-Site>>

OFF-SITE SUPERVISION

The primary objective of Off-Site Supervision is to ensure safety and soundness of insured banks through off-site surveillance functions which consist of three principal activities.

First is the continuous evaluation of the financial condition and performance of insured banks and monitoring compliance with prescribed prudential guidelines,while the second is the assessment deposits of insured banks to determine the assessable deposits and deposit insurance premium payable thereon.The third activity is the financial and technical assistance to insured financial institutions and the management of failing/distressed banks including analysis and appraisal of turn-around plans and other failure resolution options.

The continuous survelliance of insured banks involves the determination of the financial condition and perfomance of banks through the analyses of banks' Call reports, Banks' External Auditors' Reports to the Corporation, On-Site Examination reports, Management Letter(s), market information, etc.

The reports generated provide early warning signals, which enables the Supervisory Authorities to make appropriate decisions for prompt corrective actions to be taken by banks.In addition, the reports are utilised as inputs into On-Site Examination Planning and as a tool for the formulation of banking policies.

In line with the current drive towards full disclosure of information and zero tolerance of inaccurate data rendition by Banks, the bank Analysis System(BAS), an automated system for rendering returns is presently being enhanced jointly by the CBN and NDIC.The data Submission System (DSS) of the enhanced version, known as the electronic Financial Analysis Surveillance System (eFASS), would transmit relevant Call Reports electronically to the CBN/NDIC for further processing.

The Off-Site Surveillance also ensures that customers' deposits are safe and covered by the payment of appropriate insurance premium by banks.To this end, the department carries out premium assessment of all insured banks.

The bank restructuring function entails the orderly resolution of problem and failing banks.The department carries out appraisal of banks' request for financial and technical assistance and such assistance are granted to banks that meet the required conditions.To view required conditions click on checklist of Requirements from banks requesting Liquidity Support.