Managing Director of Nigeria Deposit Insurance Corporation, NDIC Alhaji Umar Ibrahim has reiterated the importance of financial intermediation in the banking system, noting that it is key for economic growth.
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He made this observation while delivering a welcome address at the Business Day annual banking conference in Lagos.
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"The banking system promotes economic growth through the process of intermediation by efficiently allocating funds mobilized from the surplus economic units to deficit units. This function therefore suggests that financial intermediation could serve as a catalyst for economic growth and development."
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"It is instructive to note that banks have over the years played this intermediation role to facilitate the growth of the economy. However, a lot needs to be done as credit being extended to the real sectors of the economy such as agriculture, manufacturing, solid minerals is meager, short tenured and at high interest rates," he added.