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Bullion

Keywords

Financial sector stability, non-bank financial institutions, CBN.

Abstract

The Banks and Other Financial institutions Act (BOFIA) defines an NBFI to mean "any individual, body, association or group of persons; whether corporate or unincorporated, other than the banks licenced under the Act which carries on the business of a discount house, finance company and money brokerage and whose principal object include factoring, project financing, equipment leasing, debt administration, fund management, private ledger services, investment management, local purchase order financing, export finance, project consultancy financial consultancy, pension fund management and such other business as the Bank may, from time to time, designate". This paper affords the opportunity to explain and restate the Bank policies on certain issues that affect the banking industry and to correct any misconception and misrepresentation of such policies that affect many non-bank financial institutions sub-sector and the economy in general. It examines their growth and impact of their operations on the financial sector stability. The paper concludes that. the types of non-bank financial institutions and their role in the economic growth and development of the nation. We have examined their growth and impact of their operations on the financial sector stability and concluded that their impact has been both positive and negative but has the potential of improving the financial intermediation.

Author Bio

The author is a staff of Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

1

Volume

28

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