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Banking System Fragility In Nigeria: Hanging On The Precipice?, Peter Akinyemi Kayode, Foluso Ololade Oluwole
Banking System Fragility In Nigeria: Hanging On The Precipice?, Peter Akinyemi Kayode, Foluso Ololade Oluwole
AAU Journal of Business and Law مجلة جامعة العين للأعمال والقانون
The health of a country’s banking system is a key determinant to the development of the country. A fragile banking system portends danger not only to the financial system but the entire economy. This study investigates the state of the Nigerian banking system in terms of stability or fragility from 1981 to 2020. We used the banking system fragility index (BSFI) proposed by Kibritçioğlu (2003) to analyze Nigerian banking industry aggregate data from three risk areas: credit, market and liquidity. We estimated that out of the 40 years examined, the banking system was fragile for 23 years given their BSFI …