THE EFFECT OF LIQUIDATION AND DISTRESS IN THE NIGERIAN BANKING INDUSTRY -“THE ROLD OF NIGERIA DEPOSIT INSURANCE CORPORATION

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THE EFFECT OF LIQUIDATION AND DISTRESS IN THE NIGERIAN BANKING INDUSTRY -“THE ROLD OF NIGERIA DEPOSIT INSURANCE CORPORATION

Abstract:

The Nigerian banking industry plays a crucial role in the country’s economic stability and growth. However, like any financial system, it is susceptible to various risks, including distress and liquidation. This study aims to examine the effects of liquidation and distress within the Nigerian banking industry and the role played by the Nigeria Deposit Insurance Corporation (NDIC) in mitigating these effects.

The research utilizes a combination of qualitative and quantitative methods to investigate the impact of bank distress and liquidation on stakeholders such as depositors, shareholders, employees, and the overall economy. It explores the reasons behind bank distress, including factors such as inadequate risk management practices, weak corporate governance, and economic downturns.

The study also focuses on the NDIC, a regulatory agency established by the Nigerian government to protect depositors and promote the stability of the banking system. It analyzes the mechanisms and strategies employed by the NDIC to manage distressed banks, including early intervention, bridge bank operations, and bank resolution through liquidation or acquisition.

Furthermore, the research examines the effectiveness of NDIC’s interventions in minimizing the negative consequences of bank distress and liquidation. It evaluates the corporation’s ability to protect depositors’ funds, maintain public confidence in the banking system, and facilitate the orderly exit of distressed banks.

The findings of this study contribute to the existing literature on the Nigerian banking industry by providing insights into the consequences of bank distress and liquidation. It highlights the significance of regulatory institutions like the NDIC in safeguarding the stability and integrity of the banking sector. The research also offers recommendations for policymakers and banking regulators to enhance the effectiveness of distress resolution mechanisms and strengthen the resilience of the Nigerian banking system.

Keywords: Nigerian banking industry, bank distress, liquidation, Nigeria Deposit Insurance Corporation, stakeholders, regulatory intervention, risk management, corporate governance, financial stability, economic impact.

THE EFFECT OF LIQUIDATION AND DISTRESS IN THE NIGERIAN BANKING INDUSTRY -“THE ROLD OF NIGERIA DEPOSIT INSURANCE CORPORATION. GET MORE  PHILOSOPHY PROJECT TOPICS AND MATERIALS

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