Examination of the law relating to protection of bank deposits, liquidation and winding-up of banks in Nigeria

Matthew Enya Nwocha ()
Additional contact information
Matthew Enya Nwocha: Head of Department of Jurisprudence and International Law, Faculty of Law, Ebonyi State University, Abakaliki, Nigeria

Juridical Tribune - Review of Comparative and International Law, 2017, vol. 7, issue Special, 108-118

Abstract: This paper is written against the background of frequent bank failures, mergers and winding-up of banks which have caused a great deal of apprehension in the minds of bank customers, depositors and creditors in Nigeria. The paper therefore is aimed at interrogating the legislative intervention in this regard and in particular the role that the Nigeria Deposit Insurance Act has played in mitigating the uncertainty and hardship that has been occasioned by incessant bank failures in the country. The method of research here is the use of the NDIC Act and other related legislation as primary sources of research in addition to secondary sources such as works authored by legal scholars. The paper has found that legislative intervention has reduced the incidents of bank failure and also offered a number of protections to bank customers and their deposits. The paper has however, discovered shortcomings in the law that need to be amended if bank deposits are to be accorded adequate protection in the event of liquidation or winding up. It has therefore recommended, among other things, the proportionate repayment of bank deposits in the event of liquidation, intensification of the work of bank examiners, and increased penal sanctions on bank directors and senior management staff whose actions cause bank failure. The overall implication of the study is that when its recommendations are implemented there would be greater confidence and stability in the banking sector which would in turn boost economic growth in the country.

Keywords: insured institution; liquidation; winding-up; bank deposits; bank examiner. (search for similar items in EconPapers)
JEL-codes: K22 K34 (search for similar items in EconPapers)
Date: 2017
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://tribunajuridica.eu/arhiva/An7v11/8.%20Nwocha.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asr:journl:v:7:y:2017:i:special:p:108-118

Access Statistics for this article

More articles in Juridical Tribune - Review of Comparative and International Law from Bucharest Academy of Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Catalin-Silviu Sararu ().