Financial Intermediation in the Pre-Consolidated Banking Sector in Nigeria

Hesse, Heiko

World Bank, Washington, DC

关键词: ACCOUNTING;    ARBITRAGE;    AUCTIONS;    BAD DEBT;    BAD DEBTS;   

DOI  :  10.1596/1813-9450-4267
RP-ID  :  WPS4267

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper uses unique bank-by-bankbalance sheet and income statement information toinvestigate the intermediation efficiency in the Nigerianpre-consolidated banking sector during 2000-05. The authoranalyzes whether the Central Bank of Nigeria's policyof recent banking consolidation can be justified andrationalized by looking at the determinants of spreads. Aspread decomposition and panel estimations show that thereform of the banking sector could be the first step toraise the intermediation efficiency of the Nigerian bankingsector. The author finds that larger banks have enjoyedlower overhead costs, increased concentration in the bankingsector has not been detrimental to the spreads, bothincreased holdings of liquidity and capital might have ledto lower spreads in 2005, and a stable macroeconomicenvironment is conducive to a more efficient channeling ofsavings to productive investments.