THE ROLE OF NIGERIA DEPOSIT INSURANCE CORPORATION IN THE BANKING SECTOR. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
1.1 STATEMENT OF THE PROBLEM AND OBJECTIVE OF THE STUDY (PURPOSE OF THE STUDY)
Over the years the federal government was saddled with the problem of the debt owned depositors by failed banks. This the government our this as a big problem because more banks are licensed and this means more liability for the federal government.
The government after looking critically at the problem decided to established an organization called NDIC (Nigeria deposit insurance corporation) to take full charges of depositors funds in collaboration with central bank of Nigeria (CBN) the idea of a NDIC in the country was welcome to deregulate the banking sectors.
The automous condition of banking sector in necessary if developments, international standardization is to be achieved and more so. It economic emancipation is to be a thing of reality.
Government over influence in the running of banks is problem that has prompted the establishment of the corporation. Government can only controlled the activities of banks that are owned by over or been incorporated by law and what I mean by incorporated is by paying recapitalization requirement (#256) which introduced on 2004 by CBN governor.
The purpose of the study are the following:
v To evaluate the problems of mismanagement of fund
v To x-ray depositor fund insecurity in banks
v To investigate the reason for failures of banks
v To know CBN / NDIC roles in saving the depositor fund
v To find the reason for unit bank abnormal growth in the century
v To know whether banks is keeping legal reserved improved by CBN for day to day recording
v To eliminate fraud act among banks managers
v To wipe out distress among incorporated banks in Nigeria banking sectors.
1.2 REASONS FOR THE STUDY
The reason for the study is to know the NIDC roles in banking sector is as follows
v To know the NDIC roles in nation economic financial monetary management
v To know the reason why some banks in our nation is distress
v To know the important impact NDIC play in the banking sectors
v To know some instrument NDIC used in regulating banking activities
v To fund some problem that are facing the practice of banking
v To eradicate fraud acts in banking sector through the activation of NDIC