Rufus Folorunso Akinyooye - St Clements University

US$4,244,322.99
(d) Litigation recoveries NIL N1, 682,310,327.58
US$533,144.83
(e) Debt recovery cases 105 N843, 511,769.49
DEFENSIVE CASES.
(a) Pending 404
US$117,049.33
Contingent Liability N3, 230,394,583.08
US$8,909,458.17
Counterclaim N271, 240,082.24
(b) Judgments 91
In favour 62 NIL
Against 29 N92, 960,142.12
(Defensive litigation settled 7 N46, 094,971.62
LIQIUDATION RELATED CRIMINAL CASES.
Pending 18 N4, 040,800,000.00
Source: NDIC Returns 2004.
Okonjo-Iweala (2004) would want the relationship between coverage limit and moral hazard to
be considered, moral hazard being the tendency of bank operators to take high risks
because of the presence of a deposit insurer like NDIC. She said this is particularly
important in Africa where deposit insurance tends to be confused with conventional
insurance, with the result that total coverage is expected rather than the best practice of
limited coverage.
B) Statement of the general problem
The problem is bank failures worldwide and the apparent inadequacy of the Basel 1 Accord to
stem the tide necessitating a revision of the framework now being called the Basel 2 Accord.
The official name of both Accords remains International Convergence of Capital Measurement
and Capital Standards with Basel 2 having “a revised framework” tagged to it.