Abstract:
The study assess the effect of banking regulation on the deposits of Nigerian deposit
money banks with emphasis on the role of the Central Bank of Nigeria and The Nigerian
Deposit Insurance Corporation. It evaluates the roles and contributions of CBN and
NDIC to the Nigerian deposit money banks. This study evaluates the effects of liquidity
ratio, cash reserve ratio and loan to deposit ratio on the deposits of Nigerian deposit
money. The study used ex-post facto research design using secondary data obtained from
Central Bank of Nigeria statistical bulletin for the period of 7 years from 2012-2018 on
quarterly basis. Data obtained was analyzed using SPSS version 22 and results obtained
is tested for significance using ANOVA. The result indicate that liquidity, cash reserve
and loan to deposit ratio have significant positive effect on the total deposits of deposit
money banks in Nigeria. The study recommend that the regulatory role of CBN and
NDIC should be enhanced on the incidence of widespread bad loan portfolio the in
Deposit money banks and the regulators of deposit money banks should ensure regular
payment of claims to customer’s deposits in the event of liquidation of banks as these
would go a long way in restoring people’s confidence in the banking industry in Nigeria
