International Monetary FundWorld Bank2013-10-012013-10-012013-05https://hdl.handle.net/10986/15964This 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.en-USCC BY 3.0 IGOACCOUNTINGASSET MANAGEMENTASSET MANAGEMENT COMPANYASSET PORTFOLIOASSET STRIPPINGASSET VALUEBALANCE-SHEET INSOLVENTBANK ASSETBANK DEPOSITSBANK FAILUREBANK FAILURESBANK GUARANTEESBANK LIQUIDATIONBANK NEGARA MALAYSIABANKING CRISISBANKING INDUSTRYBANKING SECTORBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEM ASSETSBANQUE CENTRALE DES ETATS DE L'AFRIQUE DE L'OUESTBUSINESS PLANCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL MARKETSCAPITAL REQUIREMENTSCASH FLOWSCASH RESERVECENTRAL BANKSCLAIMCOLLATERALCOMMERCIAL BANKSCOMPANY LAWCONNECTED LENDINGCONSOLIDATED SUPERVISIONCONSOLIDATIONCORPORATE GOVERNANCECORRECTIVE ACTIONCORRECTIVE ACTIONSCOURT PROCEEDINGSCREDIT GUARANTEECREDIT LINECREDIT LINESCREDIT RISKSCREDITORCREDITOR CLAIMSCREDITORSCREDITSCRIMINAL PENALTIESDATA RELIABILITYDEBTDEBT MANAGEMENTDEBT RESTRUCTURINGDEBTORSDECISION-MAKING POWERSDEPOSITDEPOSIT GUARANTEEDEPOSIT INSURANCEDEPOSIT INSURANCE AGENCYDEPOSIT INSURANCE COVERAGEDEPOSIT INSURANCE FUNDDEPOSIT INSURANCE SCHEMEDEPOSIT LIABILITIESDEPOSITORSDEPOSITSDISCRETIONARY POWERSDISCRIMINATORY TREATMENTDISTRESSED ASSETSDISTRESSED BANKSDISTRESSED FIRMDIVIDENDDIVIDEND PAYMENTDUE DILIGENCEECONOMIC SHOCKSEMERGENCY LENDINGENFORCEMENT CAPACITYEQUITABLE TREATMENTEQUITIESESTATEFINANCIAL ASSISTANCEFINANCIAL CONGLOMERATEFINANCIAL CRISISFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL MARKETFINANCIAL POLICYFINANCIAL SECTOR ASSESSMENTFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL SUPPORTFINANCIAL SYSTEMFINANCIAL SYSTEM STABILITYFIXED ASSETSFOREIGN BANKSFOREIGN CREDITORSFOREIGN FIRMSFRAMEWORK FOR BANK INSOLVENCYFRAUDSGENERAL INSOLVENCY LAWGOING CONCERNGOOD FAITHGOVERNMENT SECURITIESHOLDING COMPANIESHOLDING COMPANYIMPAIRED ASSETSINDIVIDUAL BANKSINDIVIDUAL LIABILITYINSIDER LENDINGINSOLVENCYINSOLVENCY LAWINSOLVENCY PROBLEMINSOLVENCY PROCEEDINGSINSOLVENCY PROCESSINSOLVENTINSOLVENT BANKSINSOLVENT ESTATEINSTITUTIONAL FRAMEWORKINSURED DEPOSITSINTEREST RATEINTEREST RATESINTERNATIONAL BANKJUDICIAL REVIEWJUDICIARYJURISDICTIONJURISDICTIONSLARGE CREDITORSLAWSLEGAL ACTIONSLEGAL AUTHORITYLEGAL FRAMEWORKLEGAL POWERSLEGAL PROCEEDINGSLEGAL PROTECTIONLEGAL PROVISIONSLEGISLATIONLENDERLENDER OF LAST RESORTLIQUID ASSETSLIQUIDATION FRAMEWORKLIQUIDATION PROCEEDINGSLIQUIDATION PROCESSLIQUIDATIONSLIQUIDATORLIQUIDITYLIQUIDITY ASSISTANCELIQUIDITY POSITIONSLIQUIDITY PROBLEMSLIQUIDITY RATIOLIQUIDITY RATIOSLIQUIDITY SUPPORTLOANMANDATEMANDATESMARKET DISCIPLINEMARKET VALUEMERGERMERGERSMINIMUM CAPITAL REQUIREMENTSMINIMUM LIQUIDITY RATIOMONETARY COMPENSATIONMORAL HAZARDNARROW BANKINGNATIONAL BANKNEGOTIATIONSNONPERFORMING LOANSNUMBER OF BANKSOFF BALANCE SHEETOPEN BANKORDERLY LIQUIDATIONPARENT COMPANYPAYMENT OF DIVIDENDSPENALTIESPENALTYPROBLEM BANKSPROBLEM LOANSPRUDENTIAL REQUIREMENTSPUBLIC CONFIDENCEPUBLIC FINANCEPUBLIC FUNDSPUBLIC POLICYPURCHASE AND ASSUMPTION TRANSACTIONRECAPITALIZATIONRECOVERY OF DEBTSREGULATORY FORBEARANCEREGULATORY FRAMEWORKREGULATORY REFORMREORGANIZATIONREORGANIZATION PROCEEDINGSREPAYMENTRESERVE BANKRISK MANAGEMENTRISK OF INSOLVENCYSETTLEMENTSOLVENCYSOLVENCY PROBLEMSSTOCK MARKETSUBORDINATED DEBTSUBSIDIARIESSUPERVISORY ACTIONSUPERVISORY AGENCIESSUPERVISORY FRAMEWORKSUPPORT TO BANKSSYSTEMIC BANKING DISTRESSSYSTEMIC CRISISSYSTEMIC RISKTREATMENT OF CREDITORSUNIONUNIVERSAL BANKINGUNSECURED CREDITORSUNSECURED DEBTUNSECURED LOANSWINDING UPWINDING-UPWorld Bank10.1596/15964