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Regulations of Other Financial Institutions in a Banking System Growth

Adetiloye, K. A. and Taiwo, J.N. and Adegboye, F.B. (2018) Regulations of Other Financial Institutions in a Banking System Growth. Journal of Economic & Management Perspectives, 12 (1). pp. 71-81. ISSN 2523-5338

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The banking system growth through capitalisations in Nigeria produced some after-effects, both salutary and otherwise on the other financial institutions. The major objective of this paper was to find out the impact of the growth of the banking system on the OFIs. The paper adopted both primary and secondary data to assess the impact of the growth and regulation on the OFIs. The paper adapted the Regulatory Pressure Index to assess the perception of regulation and supervision of the OFIs with granger causality and regressions and the main techniques of estimation. Banks have grown at the expense of the OFIs, especially the MFBs and PMIs. Of the OFIs the most negatively impacted have been the Finance Houses and Primary Mortgage Institutions. Growth in the banking assets has been more aggressive than from the OFIs and the various sectors have impacted one way or the other either negatively or otherwise. A further investigation with primary data using the nine RPI objectives indicates that operators agree that there is inadequate supervision in the areas of capital adequacy, liquidity and products offerings of the OFIs. The paper concludes by recommending the change in the mode of supervision and the strengthening the Other Financial Institutions Department of the monetary authority or establishment of a new one to oversee and adequately regulate the activities of the OFIs.

Item Type: Article
Uncontrolled Keywords: Regulation; Supervision; Finance Houses; Primary Mortgage Institutions (PMIs); Microfinance Banks; Regulatory Pressure Index (RPI).
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 03 Sep 2019 09:46
Last Modified: 03 Sep 2019 09:46

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