Nigeria : Methodological Approach for Development of a Target Deposit Insurance Fund Model

Nigeria : Methodological Approach for Development of a Target Deposit Insurance Fund Model

Principle 11 of the International Association of Deposit Insurers (IADI) Core Principles (CP 11) states that deposit insurers are required to have available to them all funding mechanisms necessary to ensure the prompt reimbursement of depositors’ claims. One of the Essential Criteria under CP 11 is...

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Bibliographic Details
Main Author: World Bank Group
Format: Report
Language:English
en_US
Published: World Bank, Washington, DC 2016
Subjects:
banking sector
deposit insurance
loss distribution
credit portfolio
credit failures
Online Access:http://documents.worldbank.org/curated/en/699631481178146430/Nigeria-Methodological-approach-for-development-of-a-target-deposit-insurance-fund-model
http://hdl.handle.net/10986/25776
id okr-10986-25776
recordtype oai_dc
spelling okr-10986-257762021-05-25T08:56:23Z Nigeria : Methodological Approach for Development of a Target Deposit Insurance Fund Model World Bank Group banking sector deposit insurance loss distribution credit portfolio credit failures Principle 11 of the International Association of Deposit Insurers (IADI) Core Principles (CP 11) states that deposit insurers are required to have available to them all funding mechanisms necessary to ensure the prompt reimbursement of depositors’ claims. One of the Essential Criteria under CP 11 is that the size of the fund, the “fund reserve ratio”, should be based on “clear, consistent and well-developed criteria.” Currently, the Nigerian Deposit Insurance Corporation (NDIC) sets its reserve ratio based on a formula that may not properly consider future risks as it is based partially on the level of insured deposits in banks deemed to be in distress. This paper presents a framework to assist the Nigerian Deposit Insurance Corporation (NDIC) in determining the target deposit insurance fund for Nigeria’s largest commercial and merchant banks. The framework takes into consideration the role that credit and liquidity risks play in bank failure as well as recent changes to bank regulation and crisis management in Nigeria. 2016-12-16T20:52:02Z 2016-12-16T20:52:02Z 2016-05 Report http://documents.worldbank.org/curated/en/699631481178146430/Nigeria-Methodological-approach-for-development-of-a-target-deposit-insurance-fund-model http://hdl.handle.net/10986/25776 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Other Financial Sector Study Economic & Sector Work Africa Nigeria
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic banking sector
deposit insurance
loss distribution
credit portfolio
credit failures
spellingShingle banking sector
deposit insurance
loss distribution
credit portfolio
credit failures
World Bank Group
Nigeria : Methodological Approach for Development of a Target Deposit Insurance Fund Model
geographic_facet Africa
Nigeria
description Principle 11 of the International Association of Deposit Insurers (IADI) Core Principles (CP 11) states that deposit insurers are required to have available to them all funding mechanisms necessary to ensure the prompt reimbursement of depositors’ claims. One of the Essential Criteria under CP 11 is that the size of the fund, the “fund reserve ratio”, should be based on “clear, consistent and well-developed criteria.” Currently, the Nigerian Deposit Insurance Corporation (NDIC) sets its reserve ratio based on a formula that may not properly consider future risks as it is based partially on the level of insured deposits in banks deemed to be in distress. This paper presents a framework to assist the Nigerian Deposit Insurance Corporation (NDIC) in determining the target deposit insurance fund for Nigeria’s largest commercial and merchant banks. The framework takes into consideration the role that credit and liquidity risks play in bank failure as well as recent changes to bank regulation and crisis management in Nigeria.
format Report
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Nigeria : Methodological Approach for Development of a Target Deposit Insurance Fund Model
title_short Nigeria : Methodological Approach for Development of a Target Deposit Insurance Fund Model
title_full Nigeria : Methodological Approach for Development of a Target Deposit Insurance Fund Model
title_fullStr Nigeria : Methodological Approach for Development of a Target Deposit Insurance Fund Model
title_full_unstemmed Nigeria : Methodological Approach for Development of a Target Deposit Insurance Fund Model
title_sort nigeria : methodological approach for development of a target deposit insurance fund model
publisher World Bank, Washington, DC
publishDate 2016
url http://documents.worldbank.org/curated/en/699631481178146430/Nigeria-Methodological-approach-for-development-of-a-target-deposit-insurance-fund-model
http://hdl.handle.net/10986/25776
_version_ 1764460112201646080

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