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Difficulty: EasyFinancial System Regulatory Bodies: SEC and NDIC

The Nigeria Deposit Insurance Corporation (NDIC) is statutorily mandated to insure bank deposit liabilities and protect depositors in the event of bank failure in Nigeria.

Answer: Answer

Answer

True
The statement is accurate because the Nigeria Deposit Insurance Corporation (NDIC) protects bank depositors against financial loss caused by bank failure and guarantees bank deposit liabilities up to statutory limits.

Step-by-Step Solution

1
Examine the regulatory body mentioned in the statement and its key statutory purpose.
The entity is the Nigeria Deposit Insurance Corporation (NDIC).
Understanding institutional roles is necessary to evaluate jurisdictional accuracy.
2
Compare the function described (protecting depositors and insuring bank liabilities) with the mandate of NDIC.
NDIC directly acts as a bank deposit insurer and supervisor, providing a financial safety net to depositors.
Securities regulation belongs to the SEC, whereas deposit protection belongs to the NDIC.

Key Concept

Primary Mandate of the Nigeria Deposit Insurance Corporation (NDIC)
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Topics

Financial System Regulatory Bodies: SEC and NDIC

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