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Performance of Liabilities Accruing from Liberalization of the Banking Sector in Nigeria

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  • Samson E. Edo

Abstract

This paper investigates the behavior of the banking sector with a view to ascertaining whether or not the deposit liabilities accruing from financial liberalization were efficiently applied by the sector to enhance performance. It is based on the experience of Nigeria which is a developing country that suffered severe and prolonged economic recession leading to the adoption of financial liberalization policy in 1986. The investigation yields interesting results which reveal that the effect of expansion in deposit liabilities on performance of the banking sector was indeed positive and highly significant. It follows therefore that the banking sector efficiently utilized the expanded deposits to enhance profit and hence the policy of financial liberalization largely benefited shareholders in the banking sector.

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  • Samson E. Edo, 2012. "Performance of Liabilities Accruing from Liberalization of the Banking Sector in Nigeria," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 4(2), pages 135-146, December.
    • Handle: RePEc:rfb:journl:v:04:y:2012:i:2:p:135-146
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    1. Ngozi Adeleye & Evans Osabuohien & Ebenezer Bowale & Oluwatoyin Matthew & Emmanuel Oduntan, 2018. "Financial reforms and credit growth in Nigeria: empirical insights from ARDL and ECM techniques," International Review of Applied Economics, Taylor & Francis Journals, vol. 32(6), pages 807-820, November.
    2. Bosede Ngozi Adeleye & Michael Adusei & Olayinka Olohunlana & Opeyemi Akinyemi-Babajide & Arumugam Sankaran & Abdul Jamal, 2022. "Real deposit rate and credit supply nexus in ECOWAS," SN Business & Economics, Springer, vol. 2(2), pages 1-24, February.

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