Financial sector reforms, macroeconomic instability and the order of economic liberalization: The evidence from Nigeria
Loading...
Files
Date
2001-11-01
Authors
Sylvanus I. Ikhide
Abayomi A. Alawode
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
Financial sector reforms began in Nigeria with the deregulation of interest rates in August
1987. Since then, far-reaching policy measures including the chartering of new banks,
reform of the capital market and a move from direct to indirect monetary controls have
been undertaken. The results from the implementation of the reforms have been
disappointing, however. Bank insolvency, high inflation and excessively high interest
rates have become common phenomena in the economy. This study uses discriminant
analysis to demonstrate that the health of banks deteriorated following reforms in Nigeria.
The study cautiously identifies a wrong sequencing process as a major factor in the poor
performance of the financial sector reforms, but agrees that a lot more research needs to
be done in this area.
Description
HG 187 .5 . N6
Keywords
Finance - Nigeria , BUsiness Cycles Nigeria , Free enterprise - Nigeria