Download or read book Effects of Financial Sector Reforms on Economic Growth The Case of Nigeria written by Angel Okonkwo and published by GRIN Verlag. This book was released on 2021-10-18 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (undergraduate) from the year 2019 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 4.60, , course: Banking and Finance, language: English, abstract: The objectives of this study includes to examine the effects of banking sector reforms on bank performance, savings, investments, developments of the Nigerian Banking System and Economic Growth. The banking sector is without no doubt a very essential part of the economy of a nation and any reforms carried out in it extend to other parts of the economy representing a transformational moment for the economy and its people. So it remains a nationwide challenge that the Nigerian banking sector and it’s reforms haven’t been able to significantly support the long-term financial needs of the real sector or facilitate the growth of the Nigerian economy The Augmented Dickey-Fuller (ADF) Test and The Phillip-Perron Test were used to test for stationarity of the variables, while the Johansen co-integration test was employed to indicate the existence of a long-run relationship among Gross Domestic Product—which acted as the Economic Growth proxy, Commercial Bank’s Capital, Commercial Bank’s Credit, and Number of Commercial Bank Branches which acted as the other variables. Secondary data was sourced from Commercial Bank Statistics, Central Bank Of Nigeria Bulletins, Nigeria Bureau Of Statistics, Statistical Bulletins for the period of 1998-2017. Conclusively, there was a positive and significant relationship betweenEconomic Growth and Banking Sector Reforms in the long run, but a negative relationship between Economic Growth and Financial Sector Reforms in the short-run. It was recommended that the government should ensure political and macroeconomic stability as the activities in all other sectors are affected by them, and that people are enlightened on the benefits of banking sector reforms so that they don’t take opposing actions against the goal of reforms.

Download or read book The Impact of Financial Reforms on Economic Performance in Nigeria written by Mfon Akpan and published by LAP Lambert Academic Publishing. This book was released on 2014-05-20 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study was carried out to examine the Impact of financial reforms on Economic Performance in Nigeria. The study sought to assess the performance of Nigerian Banks as influenced by changes in the economy as well as changes in other sectors of the financial system. Following a forty year review of the performance of Nigeria's economy in tandem with the performance of Banks in the face of the ebbs and flows of the identified parameters, the study noted two eras of pre-reform (1970-1985) and the reformed (1995-2010) financial eras. To this end it was concluded that reforms so far implemented have not significantly move the economy foreword and consequently banks have not also performed as had been expected; but rather, the reforms have created avenues for executive fiat, corruption and embezzlement of public funds. The study recommended that government should ensure that subsequent reform policy thrust be geared toward proper reserves management, efficient stock market operation etc, to enable banks put their capital and asset base to full utilization, while insurance sector should be given proper policy consideration for its development, capable of moving the economy forward.

Download or read book Economic Growth in Nigeria written by Charles Osondu Manasseh and published by . This book was released on 2014 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The growth of financial system, as the central hub of every economy is paramount for economic development. The reformation of the financial sector is the bedrock for building a formidable, transparent and efficient financial system that could supports the mobilisation of domestic and foreign savings for investment. Conversely, it deepens and broadens financial intermediation, and enforces strict regulations with prudential guide for increase in business activities. Thus, the aim of the study is to investigate the causal relationship between financial sector reforms and economic growth in Nigeria. The study also established the impact of financial sector reforms on economic growth to ascertain if financial sector reforms in Nigeria promote growth. To establish this, financial sector reforms is measured with the ratio of banking sector domestic credit, domestic credit to the private sector and Capital flow proxied with foreign direct investment while economic growth is captured with Per capita GDP. Using generalised linear regression method, with quarterly time series data that spans the periods 1981Q1 to 2010Q4, the following findings on granger causality test were noticed; (a) bidirectional relationship between banking sector domestic credit and per-capita GDP; (b) unidirectional causation running from foreign direct investment to per-capita GDP and; (c) unidirectional causation running from per-capita GDP to domestic credit to the private sector. However, from the findings, banking sector domestic credit and foreign direct investment are the major policy variables that can be adjusted for economic growth. Finally, the estimated regression results show that the explanatory variables accounted for approximately 63.45 percent variation in economic growth. Hence, financial sector reform promotes economic growth in Nigeria.

Download or read book Financial Sector Reforms and Economic Growth in Nigeria 1970 2009 written by Mfonobong Etokakpan and published by LAP Lambert Academic Publishing. This book was released on 2012-05 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers an investigation to the links between financial sector reforms and economic growth in Nigeria. It discovered the channels through which financial liberalization contributed to the economic growth in Nigeria. This book reveals that all is not well with the McKinnon and Shaw postulation as interpreted and applied to Nigerian economy. The target of achieving positive and rising real deposit rate via increase in nominal interest rate was obviously a wrong approach given the structure of the economy and the connection between the financial system. A more effective means to improve real interest rate would be through macroeconomic stabilization and fiscal reforms. However, the book revealed a linkage between financial sector and economic growth. Although the results were mixed, the estimated results reveal that changes in exchange rate affect GDP i.e. exchange rate and have significant impacts on economic growth. In addition, a positive impact in exchange rate will have a positive impact on economic growth. Hence, these results show the need to sustained reforms in the financial sector in order to enhance economic growth.

Download or read book The Nigerian Banking Sector Reforms written by S. Apati and published by Springer. This book was released on 2015-12-11 with total page 221 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first comprehensive book on the politics and economics of financial sector consolidation in an emerging market in West Africa. It draws on the author's twenty years experience working with multinationals in this oil-rich zone, to address key issues and examine banking reform in one of the world's fastest-growing economies.

Download or read book Structural Reforms and Economic Performance in Advanced and Developing Countries written by Mr.Jonathan David Ostry and published by International Monetary Fund. This book was released on 2009-10-15 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume examines the impact on economic performance of structural policies-policies that increase the role of market forces and competition in the economy, while maintaining appropriate regulatory frameworks. The results reflect a new dataset covering reforms of domestic product markets, international trade, the domestic financial sector, and the external capital account, in 91 developed and developing countries. Among the key results of this study, the authors find that real and financial reforms (and, in particular, domestic financial liberalization, trade liberalization, and agricultural liberalization) boost income growth. However, growth effects differ significantly across alternative reform sequencing strategies: a trade-before-capital-account strategy achieves better outcomes than the reverse, or even than a "big bang"; also, liberalizing the domestic financial sector together with the external capital account is growth-enhancing, provided the economy is relatively open to international trade. Finally, relatively liberalized domestic financial sectors enhance the economy's resilience, reducing output costs from adverse terms-of-trade and interest-rate shocks; increased credit availability is one of the key mechanisms.

Download or read book The Nigerian Economy and Current Economic Reforms written by Augustus N. Gbosi and published by . This book was released on 2007 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Sector Development written by Charles Osondu Manasseh and published by . This book was released on 2014 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper examine the impact of institutional reforms on financial sector development in Nigeria using data that span the periods of 1996 to 2011. Our findings indicates that measures of institutional reform such as regulatory quality (Rqty), government effectiveness (Gef); and political stability and absence of voice (Psav) impact strongly on financial sector development (Dcps) in Nigeria, suggesting the need for institutional reforms that can promote viable regulatory system for the enhancement of contract enforcement; property right protection, corruption control; and to avoid any form of politically motivated violence, unconstitutional overthrownment and terrorism in Nigeria. The results of the causality test also show that financial sector development (Dcps) granger causes economic growth (Rgdp) in Nigeria. However, it is evident that future improvements in institutional quality in Nigeria, through initiation of all-encompassing reforms in the institutions, may promote financial sector development which may in turn promote economic growth.

Download or read book Effect of Financial Sector Reforms on Economic Growth in Nigeria written by Uju Akpunonu and published by . This book was released on 2019 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study examines the effect of financial (banking) sector reforms on economic growth in Nigeria from 1986-2013. Specifically, the study evaluates the extent to which bank capitalization (CAP) and interest rate (INTD) have affected economic growth in Nigeria. Secondary data were generated from various issues of Central Bank of Nigeria Statistical Bulletin, and the World Development Indicators of the World Bank. Ordinary Least Square (OLS) regression was adopted to test the two hypotheses formulated for the study. The study revealed that bank capitalization (CAP) has significantly affected economic growth in Nigeria and interest rate (INTD) has also affected economic growth significantly, though at long run. The study recommends that the CBN should build and maintain a well-articulated and properly implemented banking reforms such that will stimulate savings through high real deposit rate and lending rate which will result in financial deepening and thus, economic growth.

Download or read book Impact of Financial Reforms on the Nigerian Stock Exchange written by D. A. Omole and published by . This book was released on 1993 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Sector Reforms Macroeconomic Instability and the Order of Economic Liberalization written by Sylvanus I. Ikhide and published by . This book was released on 2001 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Financial Sector Reforms on Bank Growth in Nigeria written by Adewale Adegoke Alawiye-Adams and published by . This book was released on 2013 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper empirically examined the impact of financial sector reforms on Bank growth in Nigeria and data spanning a period of thirty four years (i.e. 1971-2005) was analysed using the Panel Data Model. Earnings per Share (EPS), Returns on Capital Employed (ROCE) and Returns on Equity (ROE) were used as proxies for Bank growth (i.e. the dependent variables) while Interest Rate, Real Financial Savings and Exchange Rates were used as the proxies for financial sector reform (i.e. the independent variables).A number of diagnostic tests were also conducted on the residuals to evaluate the models; these include the Breuch-Godfrey Serial Correlation Lagrange Multiplier (LM) Test, the Ramsey REST Test of Specification Error (i.e. to test for omitted variables, incorrect functional form, correlation between exogenous variables and error term) and the Cumulative Sum (CUSUM ) tests of parametric stability, the LM test of Serial Correlation showed that there was an absence of first order serial correlation in the residuals and cumulative sum tests also showed that observations are more stable during Pre-S.A.P (Structural Adjustment Programme) period than the Post-S.A.P era.The result obtained showed that though the impact of financial sector reforms on bank growth in Nigeria for the period of study was significant, especially as measured by the proxies of Earnings per Share and Return on Equity, it was not significant enough to transform the nations' economy to the desired level.Given the foregoing therefore, the study suggests among other things that what is needed is for financial sector reform to achieve its purpose, a stable macroeconomic environment is a prerequisite and it is germane to ensure that government fiscal policies are crafted to complement monetary policies.

Download or read book An Analytical Appraisal of the Components of Financial Reforms in Nigeria and Its Impact on the Banking Industry written by Ahmad Bello Dogarawa and published by . This book was released on 2019 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analytically appraises the various components of financial reforms in Nigeria and its impact on the banking industry. The paper uses literature survey approach to focus on the salient features of the reforms and how it affects the Nigerian banking industry from 1892 when banking started to 2010 when the new banking regime that is currently being implemented sets in. The paper confirms that a financial system, which channels financial resources efficiently to deserving sectors of the economy, is a powerful mechanism for economic growth of any country. It posits that as a key component of the financial system, banks are expected to intermediate between surplus and deficit units of the economy and collect deposits from savers in order to channel them to borrowers, transform the quality of capital with respect to size, maturity and risk, and help make the overall economy more efficient by raising the level of investment and savings. The paper concludes that in view of the fact that stability of the banking system is critical to every country, institutional, legal and operational reforms in the financial system should be put in place as appropriately and timely as required.

Download or read book Quantifying the Impact of Financial Development on Economic Development written by Jeremy Greenwood and published by DIANE Publishing. This book was released on 2010-10 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: How important is financial development for economic development? A costly state verification model of financial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as intermediation spreads and the firm-size distribution for the years 1974 and 2004. It is then used to study the international data, using cross-country interest-rate spreads and per-capita GDP. The analysis suggests that a country like Uganda could increase its output by 140 to 180 percent if it could adopt the world's best practice in the financial sector. Still, this amounts to only 34 to 40 percent of the gap between Uganda's potential and actual output. Charts and tables.

Download or read book Nigeria s Economic Reforms written by Ngozi Okonjo-Iweala and published by . This book was released on 2007-06-01 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Following years of economic stagnation, Nigeria embarked on a comprehensive reform program during the second term of the Obasanjo administration. The program was based on the National Economic Empowerment and Development Strategy (NEEDS) and focused on four main areas: improving the macroeconomic environment, pursuing structural reforms, strengthening public expenditure management, and implementing institutional and governance reforms. This paper reviews Nigeria's recent experience with economic reforms and outlines major policy measures that have been implemented. Although there have been notable achievements under the program, significant challenges exist, particularly in translating the benefits of reforms into welfare improvements for citizens, in improving the domestic business environment, and in extending reform policies to states and local governments." The authors argue that the reform program must be considered as 'initial steps on a long journey'; consequently, they have outlined a number of outstanding issues that need to be addressed by future Nigerian administrations.

Download or read book An Investigation Into the Impact of Financial Institutions on Economic Growth in Nigeria written by Ayegba Ojonugwa and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Liberalization and Bank Performance in Nigeria written by Babatunde Afolabi and published by . This book was released on 2014 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper empirically analyzed financial liberalization and Bank performance in Nigeria. Several issues have continued to engage the attention of writers on financial liberalization over time. More importantly, of particular concern here is that the implementation of financial reforms have been accompanied by variable rates of inflation and an increase in the worries about the performance of banks in most economies and especially in the Nigerian economy. There are concerns that undesirable phenomena may have arisen because of the improper timing and wrong sequencing of the Nigerian reform policies overtime with their attendant inimical consequences. The objective of this study is to examine the Liberalization of the Nigerian financial sector and the implications for the Nigeria bank performance from the perspective of the McKinnon-Shaw Hypothesis.The co integration analytical technique and panel data models were employed for data spanning a period of thirty four years (i.e. 1971-2005). Earnings per share (EPS), Returns on capital employed (ROCE) and Returns on equity (ROE) were used as proxies for Bank performance (i.e. the dependent variables) while interest rate, real financial savings and exchange rates were used as the proxies for financial liberalization (i.e. the independent variables). Moreover, a number of diagnostic tests were also conducted on the residuals to evaluate the models. The LM test of serial correlation showed that there was an absence of first order serial correlation in the residuals and cumulative sum tests also showed that observations were more stable during Pre-SAP period than the post-SAP era.The results of the study revealed that the impact of financial liberalization on bank performance in Nigeria for the period of study though was significant, especially as measured by the proxies of Earnings per Share and Return on Equity but has not been significant enough to take Nigeria's economy out of the woods.The study therefore recommends amongst other things that strong emphasis should be placed on the role of monetary policy in stabilizing macroeconomic variables so that it is not hampered by government fiscal policy of deficit financing.