Financial Sector Assessment Program : Nigeria - Crisis Management and Crisis Preparedness Frameworks

This note elaborates on the recommendations made in the Financial Sector Assessment Program (FSAP) for Nigeria in the areas of contingency planning, crisis management, and bank resolution. It summarizes the findings of the FSAP mission undertaken during September 4 to 19, 2012 and is based upon analysis of the relevant legal and policy documents and extensive discussions with the authorities and private sector representatives. The Nigerian financial system experienced a banking crisis in 2008-2009, partly triggered by the global financial crisis and by domestic events. The decisive crisis response effectively stabilized the banking system, but the challenge now is to devise a credible exit strategy and to strengthen the resolution framework. This note is structured as follows: chapter one sets out an overview of the banking crisis of 2009; chapter two analyses the institutional framework and coordination arrangements for systemic risk monitoring, crisis management, and cross-border coordination; chapter three assesses the approaches to intervene with potential problem institutions at an early stage; chapter four covers crisis management tools including official financial support, the resolution framework, Asset Management Corporation of Nigeria (AMCON); chapter five reviews the deposit insurance framework; and chapter six addresses the issue of legal protection.

Bibliographic Details

Main Authors:	International Monetary Fund, World Bank
Language:	English en_US
Published:	World Bank, Washington, DC 2013-05
Subjects:	ACCOUNTING, ASSET MANAGEMENT, ASSET MANAGEMENT COMPANY, ASSET PORTFOLIO, ASSET STRIPPING, ASSET VALUE, BALANCE-SHEET INSOLVENT, BANK ASSET, BANK DEPOSITS, BANK FAILURE, BANK FAILURES, BANK GUARANTEES, BANK LIQUIDATION, BANK NEGARA MALAYSIA, BANKING CRISIS, BANKING INDUSTRY, BANKING SECTOR, BANKING SUPERVISION, BANKING SYSTEM, BANKING SYSTEM ASSETS, BANQUE CENTRALE DES ETATS DE L'AFRIQUE DE L'OUEST, BUSINESS PLAN, CAPITAL ADEQUACY, CAPITAL ADEQUACY RATIOS, CAPITAL MARKETS, CAPITAL REQUIREMENTS, CASH FLOWS, CASH RESERVE, CENTRAL BANKS, CLAIM, COLLATERAL, COMMERCIAL BANKS, COMPANY LAW, CONNECTED LENDING, CONSOLIDATED SUPERVISION, CONSOLIDATION, CORPORATE GOVERNANCE, CORRECTIVE ACTION, CORRECTIVE ACTIONS, COURT PROCEEDINGS, CREDIT GUARANTEE, CREDIT LINE, CREDIT LINES, CREDIT RISKS, CREDITOR, CREDITOR CLAIMS, CREDITORS, CREDITS, CRIMINAL PENALTIES, DATA RELIABILITY, DEBT, DEBT MANAGEMENT, DEBT RESTRUCTURING, DEBTORS, DECISION-MAKING POWERS, DEPOSIT, DEPOSIT GUARANTEE, DEPOSIT INSURANCE, DEPOSIT INSURANCE AGENCY, DEPOSIT INSURANCE COVERAGE, DEPOSIT INSURANCE FUND, DEPOSIT INSURANCE SCHEME, DEPOSIT LIABILITIES, DEPOSITORS, DEPOSITS, DISCRETIONARY POWERS, DISCRIMINATORY TREATMENT, DISTRESSED ASSETS, DISTRESSED BANKS, DISTRESSED FIRM, DIVIDEND, DIVIDEND PAYMENT, DUE DILIGENCE, ECONOMIC SHOCKS, EMERGENCY LENDING, ENFORCEMENT CAPACITY, EQUITABLE TREATMENT, EQUITIES, ESTATE, FINANCIAL ASSISTANCE, FINANCIAL CONGLOMERATE, FINANCIAL CRISIS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL MARKET, FINANCIAL POLICY, FINANCIAL SECTOR ASSESSMENT, FINANCIAL SERVICES, FINANCIAL STABILITY, FINANCIAL STATEMENTS, FINANCIAL SUPPORT, FINANCIAL SYSTEM, FINANCIAL SYSTEM STABILITY, FIXED ASSETS, FOREIGN BANKS, FOREIGN CREDITORS, FOREIGN FIRMS, FRAMEWORK FOR BANK INSOLVENCY, FRAUDS, GENERAL INSOLVENCY LAW, GOING CONCERN, GOOD FAITH, GOVERNMENT SECURITIES, HOLDING COMPANIES, HOLDING COMPANY, IMPAIRED ASSETS, INDIVIDUAL BANKS, INDIVIDUAL LIABILITY, INSIDER LENDING, INSOLVENCY, INSOLVENCY LAW, INSOLVENCY PROBLEM, INSOLVENCY PROCEEDINGS, INSOLVENCY PROCESS, INSOLVENT, INSOLVENT BANKS, INSOLVENT ESTATE, INSTITUTIONAL FRAMEWORK, INSURED DEPOSITS, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, JUDICIAL REVIEW, JUDICIARY, JURISDICTION, JURISDICTIONS, LARGE CREDITORS, LAWS, LEGAL ACTIONS, LEGAL AUTHORITY, LEGAL FRAMEWORK, LEGAL POWERS, LEGAL PROCEEDINGS, LEGAL PROTECTION, LEGAL PROVISIONS, LEGISLATION, LENDER, LENDER OF LAST RESORT, LIQUID ASSETS, LIQUIDATION FRAMEWORK, LIQUIDATION PROCEEDINGS, LIQUIDATION PROCESS, LIQUIDATIONS, LIQUIDATOR, LIQUIDITY, LIQUIDITY ASSISTANCE, LIQUIDITY POSITIONS, LIQUIDITY PROBLEMS, LIQUIDITY RATIO, LIQUIDITY RATIOS, LIQUIDITY SUPPORT, LOAN, MANDATE, MANDATES, MARKET DISCIPLINE, MARKET VALUE, MERGER, MERGERS, MINIMUM CAPITAL REQUIREMENTS, MINIMUM LIQUIDITY RATIO, MONETARY COMPENSATION, MORAL HAZARD, NARROW BANKING, NATIONAL BANK, NEGOTIATIONS, NONPERFORMING LOANS, NUMBER OF BANKS, OFF BALANCE SHEET, OPEN BANK, ORDERLY LIQUIDATION, PARENT COMPANY, PAYMENT OF DIVIDENDS, PENALTIES, PENALTY, PROBLEM BANKS, PROBLEM LOANS, PRUDENTIAL REQUIREMENTS, PUBLIC CONFIDENCE, PUBLIC FINANCE, PUBLIC FUNDS, PUBLIC POLICY, PURCHASE AND ASSUMPTION TRANSACTION, RECAPITALIZATION, RECOVERY OF DEBTS, REGULATORY FORBEARANCE, REGULATORY FRAMEWORK, REGULATORY REFORM, REORGANIZATION, REORGANIZATION PROCEEDINGS, REPAYMENT, RESERVE BANK, RISK MANAGEMENT, RISK OF INSOLVENCY, SETTLEMENT, SOLVENCY, SOLVENCY PROBLEMS, STOCK MARKET, SUBORDINATED DEBT, SUBSIDIARIES, SUPERVISORY ACTION, SUPERVISORY AGENCIES, SUPERVISORY FRAMEWORK, SUPPORT TO BANKS, SYSTEMIC BANKING DISTRESS, SYSTEMIC CRISIS, SYSTEMIC RISK, TREATMENT OF CREDITORS, UNION, UNIVERSAL BANKING, UNSECURED CREDITORS, UNSECURED DEBT, UNSECURED LOANS, WINDING UP, WINDING-UP,
Online Access:	http://documents.worldbank.org/curated/en/2013/05/18181243/nigeria-financial-sector-assessment-program https://hdl.handle.net/10986/15964
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