An Analytical Appraisal of the Components of Financial Reforms in Nigeria and its Impact on the Banking Industry

This paper analytically appraises the various components of financial reforms in Nigeria and its impact on the banking industry. The paper uses literature survey approach to focus on the salient features of the reforms and how it affects the Nigerian banking industry from 1892 when banking started to 2010 when the new banking regime that is currently being implemented sets in. The paper confirms that a financial system, which channels financial resources efficiently to deserving sectors of the economy, is a powerful mechanism for economic growth of any country. It posits that as a key component of the financial system, banks are expected to intermediate between surplus and deficit units of the economy and collect deposits from savers in order to channel them to borrowers, transform the quality of capital with respect to size, maturity and risk, and help make the overall economy more efficient by raising the level of investment and savings. The paper concludes that in view of the fact that stability of the banking system is critical to every country, institutional, legal and operational reforms in the financial system should be put in place as appropriately and timely as required