ASSESSING THE INFLUENCE OF DEPOSIT INSURANCE COOPERATION ON BANKING INDUSTRY

CHAPTER ONE

1.2 STATEMENT OF RESEARCH PROBLEM
How does Nigeria deposit insurance corporation [NDIC] protect the bank depositor against loss?
Does the Nigeria deposit insurance corporation [NDIC] protect the interest of the creditors or shareholders of a failed bank?
Are financial institution insured by the Nigeria deposit insurance corporation
Can an insured status in Nigeria deposit Insurance Corporation be terminated?
Does an account held by a company or partnership be insured separately from individuals account?

1.3 OBJECTIVES OF THE STUDY
To check on how to give assistance in the interest of the depositors in the case of financial difficulties of bank especially when suspensions of payment are threatened.
To examine the effectiveness of the Nigeria deposit insurance corporation and how it protect the interest of shareholders and creditors of a failed bank.
To examine how Nigeria deposit insurance corporation [NDIC] insures financial institutions most especially banks.
To find out whether an insured status in Nigeria deposit insurance corporation can be terminated and if yes, how
To find out whether an account held by a company or partnership is insured separately from the individuals account.

1.4 SCOPE AND LIMITATION OF THE STUDY
The Nigeria deposit insurance corporation is a texture of a modern financial system in Nigeria. Nevertheless , the rationale for establishing the Nigeria deposit insurance corporation [NDIC] is well known in spite of the good reason for establishing the NDIC , it was not established without considerable debates.
The scope of the study is to examine critically to what extent the corporation controls the economic development as regards banking system in Nigeria.

1.5 SIGNIFICANCE OF THE STUDY
It is hoped that this study would provide valuable information on the function of NDIC to the banks and as well the customers’ deposits which is their basic function.
Another important reasons why this study is essential is that it will enable the depositors to know their right on claims in case default arises with any of the banks insured by NDIC.
Furthermore this study would focus on how to improve the standard of banking industry in the country.

1.5 STATEMENT OF THE STUDY
Hypothesis are assumptions upon which a researcher bases his or her findings are regards the data collected to a research topic or an investigation about undenying population or variables which may be true or false. Hypothesis maybe seen as an option about population variable or statement Rober [1982].
Ho; The Nigeria deposit Insurance Corporation does not have any significant improvement on the banking industry and has not improved the country economically.
H1: The Nigeria deposit Insurance Corporation has seriously improved and assisted the country economically on the banking industry.

1.6 DEFINITIONS OF TERMS
N.D.I.C: The Acronym `NDIC` means the Nigeria deposit Insurance Corporation and is an independent agency of the federal government of Nigeria. The purpose of the deposit insurance system is to protect depositors and guarantee the settlement of insured funds when a deposit taking financial institution can no longer repay their deposits.
S.A.P: The acronym `S.A.P` means the structural adjustment programmers’ and are the economic policies for developing countries that have been promoted by the world bank and international monetary fund (IMF) since the early 1980s by the provisions of loans conditional on the adoption of such policies.
I.M.F: The acronym `IMF` is international monetary fund is an organization of 188 countries working to foster global monetary corporation, secure financial stability, facilitate international trade promote growth and reduce poverty around the world.
Proliferation of New Banks; proliferation of banks is an increase in number of banks.