ABSTRACT
Deposit Insurance System (DIS) has become a key component of most financial systems worldwide because of the important roles it plays in protecting depositors as well as contributing to financial system stability. Since its establishment by the Nigeria Deposit Insurance Corporation (NDIC) Decree No. 22 of 1988, the NDIC, which is charged with deposit protection mandate has remained an active safety-net player in spite of many daunting challenges. The establishment of the corporation was bore out of necessity over two decades ago when the Federal Government conceived the idea of the implementation of the Structural Adjustment Programme (SAP) in which the deregulation of the banking system would constitute an unholden central pillar. The NDIC has been faced with numerous challenges that have hampered the effective and efficient implementation of the Deposit Insurance Scheme (DIS) in Nigeria. Thus, this research work aims at examining these challenges and to proffer sound recommendations. Firstly, the corporation is faced today with the challenge of execution of court judgement against its assets for liability of banks in liquidation. This is because courts normally regard the NDIC as a successorin-title of failed banks. Secondly, the amount fixed as maximum deposit claim under section 20(1) of the NDIC Act, 2010 to all the classes of depositors and regardless of the amount of deposit lost by a depositor in the event of failure of a deposit-taking financial institution is not reasonable. Thirdly, the penalty provided under section 45 of the NDIC Act, 2010 for non-compliance with its provisions and failure to secure the authenticity of any statement submitted pursuant to the provision of Act is less punitive. Consequently, it is hereby recommended that the NDIC Act, 2010 should further be amended to bar courts from executing judgement against the assets of the Corporation as a result of its statutory mandate as a liquidator of failed banks. Secondly, reimbursement of deposit lost by a depositor in the event of failure of an insured deposit-taking institution should be made full as this will encourage savings. Finally, the penalty provided under section 45 of the NDIC Act, 2010 should be increased by making it more punitive so as to encourage compliance. For the purpose of this research work, the doctrinal method of research will be adopted.
Background of the Study
In 2023, President Bola Tinubu’s administration made a bold decision to remove the fuel subsi...
Background of the Study
Antenatal care (ANC) is a crucial component of maternal health services that en...
Background of the Study
Cooperative societies play an important role in promoting economic development at the grassroots level by providi...
Background Of The Study
From time immemorial, transportation services have been an absolute necessity f...
ABSTRACT
This study investigates the lipid-modulating effects of extracts from different parts of the A...
ABSTRACT
Nigeria given her natural resource base and large market size qualifies to be a world leading...
STATEMENT OF PROBLEM
In human endeavors, there are a lot of developments, researches, and discoveries, which result in multifarious produ...
Background of the Study
Essential workers play a critical role in maintaining societal functions, particularly in times of crisis. These...
Background of the Study
Brand positioning refers to the strategic process through which a company differentiates its brand in the minds o...