The African Financial Review July-August 2014 | Page 19

Introduction

Are bank reforms veritable means for fostering banking growth
and developing the economy as a whole? In a developing
economy, such as Nigeria, financial sector development has
been accompanied by structural and institutional changes and
the sector generally have long been recognized to play a crucial
role in economic development of the nation (Kanayo, 2011).
Banking reforms have been an on going phenomenon around
the world right from the1980s, but it is more intensified in recent
time because of the impact of globalization which is precipitated
by continuous integration of the world market and economies.
(Adegbaju and Olokoyo, 2008). Banking reforms involve several
elements that are unique to each country based on historical,
economic and institutional imperatives.

In most cases, bank reforms are embarked upon to forestall
banking crises or cushion the effects of a recent crisis. Banking
sector reforms have come into play due to banks inability to
meet up to required obligations or satisfy their stakehold W'0