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Bullion

Keywords

Banking reform, Banking industry, Nigerian Banking industry.

Abstract

The banking industry around the world has witnessed remarkable changes in recent decades, given t h e i n c r e a s i n g w a v e o f globalization, structural and technological changes, and integration of financial markets. As McKinnon and Shaw (1973) observed in their seminar work on the key roles of banks as propel lands of growth and development in developing economies, a feeble banking system is repressive, distortionary and dis-connect the intermediation process thereby precipitating macroeconomic instability. The paper reviews the various reforms in Nigerian banking industry since 1986 particularly the complementary policies and outcomes of the recent reforms in the industry as well as the issues and challenges. The paper concludes that ,the new agenda in the Nigerian banking industry has identified the building blocks for an effective and efficient financial system that will meet international best practice. The various initiatives (the 13-point agenda) that are required to realize this vision constitute the building blocks. It needs to be recognized, however, that the realization of the vision involves the cooperation of all the stakeholders in the industry. While the foundations are being laid and plans are in place to pursue the agenda to a successful end, the future is by no means secure. It is only with the combined efforts of all that the probability of achieving a virile banking sector in which depositors can have confidence in, will be realised.

Author Bio

The author is a staff of Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

3

Volume

30

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