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Financial System and a Developing Economy: the Nigeria Experience

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Abstract

This study examines the effect of financial system in a developing Economy. This study is based on the grounds that finance plays a vital role in any economy. It was also discovered that the financial system is very important in the area of economic growth and development and as such the function of the economy depends largely on the financial system. The financial system also provides accurate and reliable information which aids in the spread of resources allocation and growth. Thus, the financial system plays a crucial role in the growth of the economy. Based on this, the following recommendations are considered; there is the need to adequately deepen the financial system through innovations, adequate and effective regulations and supervision. The financial system regulations should be proactive in the efficient allocation of funds to the productive sectors and policies should be designed in such a manner that it will help in promoting the capital market and to further eliminate any impending obstacle that may distort their operations.

Keywords

Capital
financial development
economic growth
investment
banks
opportunities
production

Declarations

Conflict of Interest Statement

The author (s) declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

References

1. Adelakan, O.J (2011). Financial sector development and economic growth in Nigeria: international journal of economic development and investment
2. Ariyo, A (1997). Paper presented at a seminar on “Debt problems and the Nigerian economy: resolutions options organized by IBN.
3. Bhatia, H.L (2017). Public finance 26th edition New Delhi vikas publishing house PVR
4. Onoh J.k (2012). Dimension of Nigeria’s monetary and fiscal policies: Domestic and external Aba, Asha publishers
5. Pennachi, G. (2010). A structural model of bank contingent bank capital. Federal reserve bank of developed, working paper No.10
6. Ujunwa, A and Otaru, S.P (2011). Legal based financial structure and long run growth: evidence from Nigeria journal of applied finance and banking vol No2.
7. World bank (2013) financial sector data Bank available from http://data world bank. Org /topic/financial-sector.

Bibliographic Information

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  • Submitted
    18 July 2022
  • Revised
    18 July 2022
  • Published
    18 July 2022