The Impact of Banking Regulation and Supervision in Nigeria Commercial Banks

The Impact of Banking Regulation and Supervision in Nigeria Commercial Banks

Banking Regulation – The uniqueness of banking in the economic system singles out the industry for much heavier regulations than any other activity.Gardner (1994) right observes than in virtually all developed market economics, the banking industry is more heavily regulated than any other commercial of industrial sectors.  In less developed countries, the position is not so different.  Unlike many other economic activities, banking is regulated from cradle since regulation starts with the grave.  Approval must obtain to close down.  Historically, formal regulation of banking was prompted by the frenetic experiences of the brings banking crises and bank failure of 1973/74 in the United Kingdom and the similar crises in banking system of Western European and the United States. [Read more…]