Clarifications on the Banking Sector Reforms in Nigeria

26 Pages Posted: 11 Sep 2004

Date Written: August 2004

Abstract

This piece presents data published by the Central Bank of Nigeria on currency, bank deposits and other financial assets, to enable us evaluate Professor Charles Soludo's 'banking reform proposals'. We show that Soludo's proposals emanated from his misconceptions on cash, deposit-mobilization/intermediation depths, and capital adequacy of banks in Nigeria. We emphasize that going ahead with any aspect of the Soludo proposals will create problems for the banking sector in particular, and the Nigerian economy in general. We argue that we should be concerned about rebuilding the financial system, not just the banking sector. We then proceed to show in very clear terms how Nigerian financial system has evolved in the last twenty five years, why this has been the case, and what we can do to get a deeper financial system in Nigeria.

Keywords: Cash, deposits, loans, bonds, equity, intermediation, banks, inflation, Nigeria

JEL Classification: E44, G21, N27

Suggested Citation

Teriba, Ayo, Clarifications on the Banking Sector Reforms in Nigeria (August 2004). Available at SSRN: https://ssrn.com/abstract=587966 or http://dx.doi.org/10.2139/ssrn.587966

Ayo Teriba (Contact Author)

Economic Associates ( email )

1st Floor Lindev Plaza, 16 Amodu Ojikutu Street
PO Box 70909
Victoria Island Lagos
Nigeria
+234 1 461 0802 (Phone)
+234 1 461 0805 (Fax)

HOME PAGE: http://www.econassociates.com

Register to save articles to
your library

Register

Paper statistics

Downloads
1,058
Abstract Views
7,566
rank
20,273
PlumX Metrics