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Bullion

Keywords

Financial system, Central Bank of Nigeria, Insurance companies

Abstract

The financial services industry is on the threshold of a revolution. The advent of the Structural Adjustment Programme (SAP) in Mid-1986, with its underlying philosophy of liberalisation and deregulation, has brought about a proliferation of banks and non-bank financial institutions. Competition has intensified, there has been increased innovation and sophistication in product design and delivery. While the new changes have enhanced the opportunities for business and profits, they have also engendered challenges and problems calling for policy action. A number of banks arc suffering various degrees of distress manifested in liquidity problems and insolvency. The paper is in four parts: Part I outlines the structure of the financial system and highlights the role of the Central Bank in the system. Part ll discusses the role of the Central Bank in the banking industry while Part lll focuses on the legal provisions governing the relationship between the insurance industry and the Central Bank, with a status report on the extent of compliance by the former with the relevant legal provisions. Part lV is a synthesis of some leading issues and conclusions emerging from Central Bank experience in the conduct of monetary and banking policy in the last three decades

Publication Title

CBN Bullion

Issue

2

Volume

15

COinS
 
 

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