Working Paper: NBER ID: w16890
Authors: 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.
Keywords: No keywords provided
JEL Codes: G21
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| 2005 Nigerian banking reforms (G28) | financial stability (G28) |
| 2005 Nigerian banking reforms (G28) | development efficiency (O22) |
| 2005 Nigerian banking reforms (G28) | profitability (L21) |
| 2005 Nigerian banking reforms (G28) | accessibility (L15) |
| improved macroeconomic environment (E66) | efficacy of banking reforms (G28) |