Evaluation Of The Impact Of The Nigerian Deposit Insurance Corporation (NDIC)
Abstract
Bank torture has been a predominant factor in the banking system of Nigeria since the early times of banking. This trend came conspicuous in the assiduity with the failure of numerous banks in the early 90’s and late 90’s torture saga brought about the exploration work the evaluation of the impact of the Nigerian deposit insurance pot( NDIC) the work is structured into a five chapter book for easy and comprehensive reading.
The frist chapter deals with the background of the prevailing circumstance in the assiduity that needed the establishment of the deposit insurance scheme it farther work on the reveal the colorful loopholes and backups of the administrative authorities and also examine the impact of the nonsupervisory and administrative bodies( NDIC & CBN) at resolving the current bank torture and failure. It also shows the extent and depth of torture the measurability of torture and also states the colorful torture resolute on option similar as cancellation of licenses increase and accession and fiscal backing given to affected banks by the nonsupervisory authorities.
The accoutrements and ways used in acquiring the information demanded for the exploration work were purely secondary data attained through the reviews of journals review once work by other scholars and forums in well given academicians. Grounded on analysis of the data collected information leading to torture of banks were certified and utmost of the causes were also certified they were traced to be caused by institutional factors, political and profitable factor also and were drawn from the major finding of the exploration work and acceptable recommendation were made in line with the finding to enable compendiums who’ll find the work germane to the field and latterly bring about beast or absent of torture in the Nigeria fiscal system
Chapter One
Preface
Background Of The Study
The civil government of Nigeria lift decree No 22 established the Nigeria deposit insurance pot in July 1988, This nonsupervisory institution is set up to ensure all deposit arrears of certified banks and other fiscal institutions the NDIC act Capt 301L.F.N 1998 farther stress on the establishment of the NDIC by the civil government to incuse bank deposit cover depositors interest and also help in promoting runner and sound banking system and farther inculcating banking habit among our people.
The Nigeria deposit insurance pot is an antonymous nonsupervisory body and has the authority to examine the books and affairs of ensured banks and other deposit taking fiscal institution every certified bank and other deposit taking fiscal institution operating in Nigeria are man dated to ensure its total deposits.
A depositor in a Nigerian deposit insurance pot ensured bank won’t pay for the cost of this deposit insurance. It’s the insured bank that pays through periodic assessment on its volume of similar deposits.
The authorized capital of the pot is N100 million out of which N50million had formerly been called and paid up by the civil government and central bank of Nigeria banks of Nigeria( CBN) in the rate of2.3 the decision by the civil government of Nigeria to establish the NDIC are.
1. To encourage saving by adding the safely of deposit and icing development of banking practice.
2. To reimburse every ensured bank depositor to the maximum tune of N 50,000 if this bank is liquidated.
3. To cover the deposit of guests.
In Nigeria moment hardly can any time pass in without one hail of one kind of torture or the other in the banking sector. The problem of torture in the fiscal sector including outright bank failure was observed in Nigeria as far back as 1930, when the first bank failure was reported. Between 1930 and 1958 when the CBN was established over 21- bank failure was reported the number of banks moment classified as problem banks as on the increase and have continued to be of serious concern to depositor government and nonsupervisory authorities.
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