Banking and Finance - Scholarly Publications

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Non-Bank Financial Institutions In Nigeria:
(2009-01) Ezike, J.F
Given the general belief that financial development promotes growth and vice versa, we try in this study to verify the conclusion that among financial institutions the banking system pre-dominates during the early phases of development but later non-bank financial institutions gain in importance and eventually surpass the banking system. By means of comparative ratios and econometric estimation. we found confirmation of an accompanying growth in the financial sector as the economy grows. Though the study established a relative decline in the prominence of the banking institutions' assets relative to those of non-bank financial institutions, as the economy grows, non-bank financial institutions, asset have not advanced to the point of overtaking banking system assets, as theoretically predicted. This we observe may derive from among others, the distress in the financial system of the mid-to late J990s which negatively affected the growth and importance of non-bank financial institutions in Nigeria.