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Were the Nigerian Banking Reforms of 2005 A Success ... And for the Poor?

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  • Lisa D. Cook

Abstract

The Nigerian banking system was in crisis for much of the 1990's and early 2000's. The reforms of 2005 were ambitious in simultaneously attempting to address safety, soundness, and accessibility. This paper uses published and new survey data through 2008 to investigate whether bank consolidation and other measures achieved their stated goals and whether they also enhanced development, efficiency, and profitability. Following the reforms, banks are better capitalized, more efficient, and less involved in the public sector but not more profitable and accessible to the poor. While there is greater supervision and less fragility, recorded distress was artificially low. The improved macroeconomic environment also explains some of the variation in observed outcomes and likely enhanced the efficacy of reforms.

Suggested Citation

  • Lisa D. Cook, 2011. "Were the Nigerian Banking Reforms of 2005 A Success ... And for the Poor?," NBER Working Papers 16890, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:16890
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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