Global Financial Meltdown and the Reforms in the Nigerian Banking Sector

Authors

Sanusi L. Sanusi, Central Bank of Nigeria, Abuja

Keywords

Central bank of Nigeria, Gross domestic product, Finacial meldown etc.

Abstract

The paper examined the global financial meltdown and the reforms in the Nigerian banking sector. It was a public speech by the formal Governor of the Central Bank of Nigeria that observed the extent and severity of the crisis that began with the bursting of the housing bubble in the United States in August 2007 reflects the confluence of myriad of factors some of which are familiar from previous crises, while others are new. As in previous times of financial turmoil, the pre-crisis period was characterized by (i) surging asset prices that proved unsustainable; (ii) a prolonged credit expansion leading to accumulation of debt; (iii) the emergence of new types of synthetic financial instruments; and (iv) regulatory failure. However, The focus of this lecture is on the Nigerian experience. I believe that my audience at this lecture today will share some perspectives on the subject, drawing from their individual experiences. The critical challenge that Nigeria faces today as a nation is how to create some irreducible minimum standards of financial system stability that will promote strong financial institutions and the emergence of budding banking system, and hence ensure sustained growth and development in Nigeria and indeed in the rest of Africa. The lecture is intended to stimulate discussions, and enable policy makers to come up with ways of identifying specific institutional arrangements and practical mechanisms that would expand financial services to economic agents in Nigeria. The focus is on developing, over time, an efficient and sustainable banking sector for economic activities to thrive. The vision is for a system that integrates the domestic, foreign, short and long term sources, where banks can exploit each others' comparative advantages in cost-effective financial services delivery.

Author Bio

The author is the Central Bank Governor, of the Federal Republic of Nigeria.

Publication Title

CBN Journal of Applied Statistics 2012

Issue

1

Volume

2

Recommended Citation

Sanusi, Sanusi L. (2011) "Global Financial Meltdown and the Reforms in the Nigerian Banking Sector," CBN Journal of Applied Statistics (JAS): Vol. 2: No. 1, Article 7.
Available at: https://dc.cbn.gov.ng/jas/vol2/iss1/7