Do Banking Sector Reforms Drive Economic Growth in Nigeria

Ikubor Ofili Jude

doi:doi:10.11648/j.ijber.20190805.14

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Do Banking Sector Reforms Drive Economic Growth in Nigeria

Ikubor Ofili Jude

Published in International Journal of Business and Economics Research (Volume 8, Issue 5)

Received: 26 May 2019 Accepted: 10 July 2019 Published: 12 August 2019

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Abstract

Banking sector reforms is the deliberate policy measures adopted by the monetary authority to promote the safety, soundness, reliability and stability of the sector, in order to be able to deliver the expected goods by improving the economy. It is against this background the investigates that impact of bank sector reforms on Nigeria’s economics growth for the period which spanned from 1970 to 2014 using ARDL analysis. The period study was disaggregated into pre bank reforms period (1970-1985), reforms period (1986-2014) and pool period (1970-2014). Real Gross domestic product (GDP) was used as a proxy for economic growth regressed on some bank performance variables such as ratio of narrow money to broad money, loan deposit ratio, commercial bank credit to the private sector, cash reserve ratio and interest rate. The study found that the bank reformed has not impacted on the growth of the Nigerian economy. The study recommend that the government should ensure strict regulatory measures through the use of its monetary policies to regulate the banking sector and the Central Bank of Nigeria should continue with its banking sector reforms and encourage substantial credit allocation to the prioritized private sector.

Published in	International Journal of Business and Economics Research (Volume 8, Issue 5)
DOI	10.11648/j.ijber.20190805.14
Page(s)	273-285
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Bank Reform, GDP, Loan Deposit Ratio, Credit to Private Sector, Cash Reserve Ratio

References

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APA Style

Ikubor Ofili Jude. (2019). Do Banking Sector Reforms Drive Economic Growth in Nigeria. International Journal of Business and Economics Research, 8(5), 273-285. https://doi.org/10.11648/j.ijber.20190805.14

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ACS Style

Ikubor Ofili Jude. Do Banking Sector Reforms Drive Economic Growth in Nigeria. Int. J. Bus. Econ. Res. 2019, 8(5), 273-285. doi: 10.11648/j.ijber.20190805.14

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AMA Style

Ikubor Ofili Jude. Do Banking Sector Reforms Drive Economic Growth in Nigeria. Int J Bus Econ Res. 2019;8(5):273-285. doi: 10.11648/j.ijber.20190805.14

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@article{10.11648/j.ijber.20190805.14,
  author = {Ikubor Ofili Jude},
  title = {Do Banking Sector Reforms Drive Economic Growth in Nigeria},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {5},
  pages = {273-285},
  doi = {10.11648/j.ijber.20190805.14},
  url = {https://doi.org/10.11648/j.ijber.20190805.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190805.14},
  abstract = {Banking sector reforms is the deliberate policy measures adopted by the monetary authority to promote the safety, soundness, reliability and stability of the sector, in order to be able to deliver the expected goods by improving the economy. It is against this background the investigates that impact of bank sector reforms on Nigeria’s economics growth for the period which spanned from 1970 to 2014 using ARDL analysis. The period study was disaggregated into pre bank reforms period (1970-1985), reforms period (1986-2014) and pool period (1970-2014). Real Gross domestic product (GDP) was used as a proxy for economic growth regressed on some bank performance variables such as ratio of narrow money to broad money, loan deposit ratio, commercial bank credit to the private sector, cash reserve ratio and interest rate. The study found that the bank reformed has not impacted on the growth of the Nigerian economy. The study recommend that the government should ensure strict regulatory measures through the use of its monetary policies to regulate the banking sector and the Central Bank of Nigeria should continue with its banking sector reforms and encourage substantial credit allocation to the prioritized private sector.},
 year = {2019}
}

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TY  - JOUR
T1  - Do Banking Sector Reforms Drive Economic Growth in Nigeria
AU  - Ikubor Ofili Jude
Y1  - 2019/08/12
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190805.14
DO  - 10.11648/j.ijber.20190805.14
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 273
EP  - 285
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190805.14
AB  - Banking sector reforms is the deliberate policy measures adopted by the monetary authority to promote the safety, soundness, reliability and stability of the sector, in order to be able to deliver the expected goods by improving the economy. It is against this background the investigates that impact of bank sector reforms on Nigeria’s economics growth for the period which spanned from 1970 to 2014 using ARDL analysis. The period study was disaggregated into pre bank reforms period (1970-1985), reforms period (1986-2014) and pool period (1970-2014). Real Gross domestic product (GDP) was used as a proxy for economic growth regressed on some bank performance variables such as ratio of narrow money to broad money, loan deposit ratio, commercial bank credit to the private sector, cash reserve ratio and interest rate. The study found that the bank reformed has not impacted on the growth of the Nigerian economy. The study recommend that the government should ensure strict regulatory measures through the use of its monetary policies to regulate the banking sector and the Central Bank of Nigeria should continue with its banking sector reforms and encourage substantial credit allocation to the prioritized private sector.
VL  - 8
IS  - 5
ER  -

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Author Information

Ikubor Ofili Jude

Department of Economics, Ambrose Alli University, Ekpoma, Nigeria

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APA Style

Ikubor Ofili Jude. (2019). Do Banking Sector Reforms Drive Economic Growth in Nigeria. International Journal of Business and Economics Research, 8(5), 273-285. https://doi.org/10.11648/j.ijber.20190805.14

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ACS Style

Ikubor Ofili Jude. Do Banking Sector Reforms Drive Economic Growth in Nigeria. Int. J. Bus. Econ. Res. 2019, 8(5), 273-285. doi: 10.11648/j.ijber.20190805.14

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AMA Style

Ikubor Ofili Jude. Do Banking Sector Reforms Drive Economic Growth in Nigeria. Int J Bus Econ Res. 2019;8(5):273-285. doi: 10.11648/j.ijber.20190805.14

Copy | Download

@article{10.11648/j.ijber.20190805.14,
  author = {Ikubor Ofili Jude},
  title = {Do Banking Sector Reforms Drive Economic Growth in Nigeria},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {5},
  pages = {273-285},
  doi = {10.11648/j.ijber.20190805.14},
  url = {https://doi.org/10.11648/j.ijber.20190805.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190805.14},
  abstract = {Banking sector reforms is the deliberate policy measures adopted by the monetary authority to promote the safety, soundness, reliability and stability of the sector, in order to be able to deliver the expected goods by improving the economy. It is against this background the investigates that impact of bank sector reforms on Nigeria’s economics growth for the period which spanned from 1970 to 2014 using ARDL analysis. The period study was disaggregated into pre bank reforms period (1970-1985), reforms period (1986-2014) and pool period (1970-2014). Real Gross domestic product (GDP) was used as a proxy for economic growth regressed on some bank performance variables such as ratio of narrow money to broad money, loan deposit ratio, commercial bank credit to the private sector, cash reserve ratio and interest rate. The study found that the bank reformed has not impacted on the growth of the Nigerian economy. The study recommend that the government should ensure strict regulatory measures through the use of its monetary policies to regulate the banking sector and the Central Bank of Nigeria should continue with its banking sector reforms and encourage substantial credit allocation to the prioritized private sector.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Do Banking Sector Reforms Drive Economic Growth in Nigeria
AU  - Ikubor Ofili Jude
Y1  - 2019/08/12
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190805.14
DO  - 10.11648/j.ijber.20190805.14
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 273
EP  - 285
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190805.14
AB  - Banking sector reforms is the deliberate policy measures adopted by the monetary authority to promote the safety, soundness, reliability and stability of the sector, in order to be able to deliver the expected goods by improving the economy. It is against this background the investigates that impact of bank sector reforms on Nigeria’s economics growth for the period which spanned from 1970 to 2014 using ARDL analysis. The period study was disaggregated into pre bank reforms period (1970-1985), reforms period (1986-2014) and pool period (1970-2014). Real Gross domestic product (GDP) was used as a proxy for economic growth regressed on some bank performance variables such as ratio of narrow money to broad money, loan deposit ratio, commercial bank credit to the private sector, cash reserve ratio and interest rate. The study found that the bank reformed has not impacted on the growth of the Nigerian economy. The study recommend that the government should ensure strict regulatory measures through the use of its monetary policies to regulate the banking sector and the Central Bank of Nigeria should continue with its banking sector reforms and encourage substantial credit allocation to the prioritized private sector.
VL  - 8
IS  - 5
ER  -

Copy | Download