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Bullion

Keywords

Shadow banking, Securitization, Financial intermediation, Liquidity, Financial regulation

Abstract

This paper reviews some conceptual and theoretical issues as well as considers the implications of shadow banking services in the Nigerian economy. lt defines shadow 3banking services as 'a system of credit intermediation that involves entities and activities outside Central Bank of Nigeria's regulatory capture'. The paper noted that Nigeria is yet to make significant policy impact on shadow banking in spite of its inherent systemic risk and regulatory arbitrage concerns on the economy. ln addition, there is neither data collection nor information management frameworks to measure its size, performance and impact on the economy. The paper therefore, recommends the design of an appropriate policy framework for shadow banking, efficient information management and the keying-in into FSB's global strategies; and concludes that a properly managed shadow financial activities could be a veritable transmission channel for effective and efficient monetary policy implementation in the economy.

Author Bio

The authors are staff of the Research Department, Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

4

Volume

39

Included in

Finance Commons

COinS
 
 

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