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Over financial regulation and stability: Does it matters for bank efficiency in Nigeria?

Author

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  • Joseph Onuche ENEMONA

    (Department of Economics, Babcock University, Nigeria)

Abstract

Banks play a key and critical role in society, mediating resources and assets around the economy between surpluses and household spending on deficits. Therefore, they have a great responsibility for sustainability and prosperity. This study is motivated by the need to investigate whether competition, regulation and stability are important for the efficiency of the Nigerian banking system. Data sourced from the World Development Indicators between 1996 and 2017 was used. The results show a negative and statistically significant relationship exists between financial regulation and efficiency of the banking sector. However, further results show a positive and statistically significant relationship exists between financial regulation and stability in the system. Thus, the study concludes by emphasizing the importance of stability and bank performance matters in Nigeria.

Suggested Citation

  • Joseph Onuche ENEMONA, 2021. "Over financial regulation and stability: Does it matters for bank efficiency in Nigeria?," Turkish Economic Review, EconSciences Journals, vol. 8(1), pages 1-13, March.
    • Handle: RePEc:cvv:journ2:v:8:y:2021:i:1:p:1-13
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • G01 - Financial Economics - - General - - - Financial Crises
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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