The Impact of Nigeria Deposit Insurance Corporation (NDIC) on Nigeria Banking Industry (A Case Study Of NDIC, Ilorin Kwara State)

The Impact of Nigeria Deposit Insurance Corporation (NDIC) on Nigeria Banking Industry (A Case Study Of NDIC, Ilorin Kwara State) 

TABLE OF CONTENT

TITLE PAGE  i

CERTIFICATION  ii

DEDICATION iii

ACKNOWLEDGEMENT iv

CHAPTER ONE

INTRODUCTION  1

1.1    Background of the study 1

1.2    Statement of Research problems 4

1.3    Objective of the study 4

1.4    Scope and limitation of the study 5

1.5    Significance of the study 6

1.6    Statement of the Study 6

1.7    Definitions of Terms 7

1.8    Organization of the Study 8 

CHAPTER TWO

LITERATURE REVIEW                                                   

2.1 Historical Background of the study 9        

2.2 Historical Background of Nigeria Deposit Insurance Corporation (NDIC) 12

2.2 Aims and objectives N.D.I.C 14

2.3 Effects/Roles of N.D.I.C in the banking industry 15

2.4 Challenges faced by N.D.I.C  16

2.5 Management and operation of N.D.I.C  17        

CHAPTER THREE

RESEARCH METHODOLOGY

3.1    Restatement of the Research Question and Hypothesis   19

3.2    Research design and data collection techniques             21

3.3 Characteristics of the study population and sampling       21

3.4 Administration of the data collection instrument               22

3.5 Procedure for processing the collection data                      22

3.6 Limitation of methodology                                                 22

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS                           23        

4.1    Presentation and analysis of data according to

research question                                                          25

4.2 Presentation and analysis of data according to hypothesis 31

4.3 Discussion of findings                                                       35

CHAPTER FIVE

Summary, conclusion and Recommendation                           36

5.1 Summary                                                                         36

5.2 Conclusion                                                                       37

5.3 Recommendations                                                            39

BIBLIOGRAPHY                                                             41

         APPENDIX I                                                                    42

         QUESTIONNAIRE                                                           43

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Prior to 2006, distress in the Nigerian banking industry had become more great source of concern to the entire financial system, the scale was generally induced until 2008, when the body called Nigerian deposit insurance corporation[NDIC] begun its operation on the safety and soundness of the depositors and  system basically in Nigeria. Consequently, the introduction of the structural adjustment programmed [S.A.P] had not given room for competition in banking industry but rather it had also complicated the financial structural structure of the country. Apart from allocating funds purely on commercial basis, banks also accommodate the handicap of numerous borrowers who have been crippled by the structural adjustment programme [S.A.P].In the provision of bad and doubtful debt of banks, convention is over rift that in major banking cycle that a financial system with an increasing provision. Bad and doubtful calls for caution from the management because this may serve as disincentive to new entrants into the banking industry. Proliferations of the new banks have gained ground for speculation of Nigeria maybe heading towards having failure. The reason behind proliferations centered on the fact that Nigeria is under banking service and therefore needs as many banks as possible. This position was perhaps encouraged by an international monetary fund [IMF] report on the healthy numbers of persons per bank branch in Nigeria. The federal military government formulated decree No. 22 which shortly established the N.D.I.C [Nigeria deposit insurance corporation] is an autonomous regulating body with  power among other to examine the books and affairs of the insured bank and other deposit-taking financial institution operating in Nigeria to ensure total deposit liabilities with NDIC with the exception of  insider deposits i.e. deposits belonging to the board members and staff of the insured banks e.g. deposits used as collateral. As a matter of fact a depositor in an NDIC insured bank will not pay through annual assessment of its volume of such deposits. It is the premium paid by the insured banks and the investment income that makeup fund of the corporation.