Issues in Funding of Deposit Insurance System: Lessons for Nigeria

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Nigeria Deposit Insurance Corporation

Part 2.- Conceptual issues in DIS funding pg.3; Part 3- Country experience in DIS funding pg.16; Part 4 - Funding Of DIS In Nigeria pg.25; Part 5- Lessons from best practices and practices in other jurisdictions pg.31.

This is a brief description on the criticality of funding to the implementation of deposit insurance system (DIS) as well as highlights the various issues involved in funding the system. In the course of examining the funding issues, experiences of some countries, namely, the United States of America, Malaysia, The Philippines and Japan as well as best practices as represented by the International Association of Deposit Insurance (IADI) Core Principles for Effective Deposit Insurance System were reviewed and lessons for the deposit insurance system in Nigeria were drawn. The funding issues reviewed by the author ranges from funding methods to funding sources, premium assessment, determination of the adequacy of funds, separate or merged funding and fund management. The lessons drawn for the deposit insurance system in Nigeria from the review of practices in other countries and best practice are in the areas of: Target Fund Ratio; Premium Assessment; Treatment of Operating Surplus; Separate or Merged Funding Arrangement; and Investment Policy.