The Impact Of Regulation And Supervision On The Activities Of Banks In Nigeria (an Assessment Of The Role Of The Cbn And Ndic)

The study is an empirical analysis of the impact of regulation and supervision on the activities of Nigerian banks with emphasis on the role of the Central Bank of Nigeria and The Nigerian Deposit Insurance Corporation. It evaluates the roles and contributions of CBN and NDIC to the Nigerian banking sector. Extensive field survey and library research was carried out and data collected were subjected to thorough analysis.

The analysis shows that the supervisory and regulatory framework of the Central Bank of Nigeria and the Nigerian Deposit Insurance Corporation are not sufficient to guarantee effective banking practices in Nigeria.

Other findings from the study include the need to increase the maximum insurance coverage due to the effect of inflation and the persistent fall in the value of the Naira, the need to disclose transactions continuously to ensure financial prudence through regular supervision and monitoring of the financial health of local banks with the aid of the ‘CAMEL’ ratings and other supervisory framework.

There is need to also increase the awareness of banking activities within the general populace through a deliberate integration process aimed at demystifying certain inherent perceptions of the public with respect to distress and the role of the Nigerian deposit Insurance Corporation (NDIC). Moreover, the public, investors and depositors were not fully aware of the activities of NDIC and CBN in liquidating and revocation of banks’ licenses due to the ineffectiveness of the enlightenment programmes used in carrying out the awareness.

The study focuses also on the consolidation agenda of the Central Bank of Nigeria and the processes, prospect and the challenges of consolidation. A questionnaire and telephone based research was adopted for the study and the data collated was tested using the chi-square analysis and supported by fundamental evidence from the database of the regulatory authorities.

Finally, the study offered suggestions as to how the problems so identified could be ameliorated.

COVER PAGE

CERTIFICATION 

APPROVAL 

DEDICATION 

ACKNOWLEDGEMENT 

ABSTRACT 

TABLE OF CONTENTS

CHAPTER ONE:

INTRODUCTION

1.1.0Background of the Study 

1.2.0Aims and Objectives of the Study 

1.3.0Scope and Limitations 

1.4.0Significance of the Study 

1.5.0Statement of Research Problems 

1.6.0Statement of Research Questions 

1.7.0Research Hypothesis 

1.8.0Definition of terms 

CHAPTER TWO:

LITERATURE REVIEW

2.0.0Introduction 

2.1.0Introduction to Banking Supervision & Regulation 

2.2.0Development of Banking in Nigeria 

2.3.0The objectives for banking Supervision 

2.4.0Approaches to Banking Regulation and Supervision

2.5.0Banking Supervision and Regulatory Structures 

2.6.0Ways and Methods by which Regulatory authorities Carry out supervisory functions in banks 

2.7.0Procedures and areas of banking examination 

2.8.0Origin of Bank regulation/Supervision in Nigeria 

2.9.0Conditions for effective banking supervision 

2.10.0The roles of Regulatory Authorities in Banking 

2.11.0The agents of banking Supervision Authorities and Authorities 

2.12.0Challenges of Supervision 

2.13.0The Nigerian Deposit Insurance Corporation 

2.14.0The Impact of Public Policy on the Banking System in Nigeria 

2.15.0Banking Sector Policies in Nigeria 

2.16.0The Performance of Public Sector Banks in Nigeria 

2.17.0The Impact of Financial Liberalisation on Banking 

2.18.0Recent developments in the organization of banking Supervision 

2.19.0Bank consolidation in Nigeria: Processes and Prospects 

2.20.0Supervision of Restructured banks 

2.21.0Assessment of Compliance with the Basle Core Principles

CHAPTER THREE:

RESEARCH METHODOLOGY

3.0.0Introduction 

3.1.0Research Design 

3.2.0Sources of data & Instruments of data Collection

3.3.0Research Instruments 

3.4.0Research Population 

3.5.0Determination of Sample size 

3.6.0Administration of Questionnaires & Interviews 

3.7.0Methods of data Analysis 

CHAPTER FOUR:

DATA PRESENTATION AND ANALYSIS

4.1.0Data presentation 

4.2.0Data analysis 

4.3.0Hypothesis Testing 

CHAPTER FIVE:

DISCUSSION OF RESULTS

5.0.0Introduction

5.1.0Findings

CHAPTER SIX:

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

6.0.0Summary of Findings 

6.1.0Conclusion

6.2.0Recommendations 

Bibliography 

Proposed Research Questionnaire