For correspondence:-
Received: November 25, 2019 Accepted: December 21, 2019 Published: December 31, 2019
Citation: Financial Deepening and Financial System Stability: Evidence from Nigeria. Account Tax Rev 2004; 3(4):50-59 doi:
© 2004 The authors.
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Abstract
The nexus between financial deepening and financial system stability in Nigeria was empirically established in this study. Secondary data covering the period of 1989 to 2017 were sourced from the Central Bank of Nigeria (CBN), the National Bureau of Statistics (NBS), the National Insurance Commission (NAICOM), the National Pension Commission (PenCom), the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) for the study. The Research Model was estimated using Ordinary Least Square (OLS) technique through the use of Econometric Views (EViews 8.0) software. The study found that financial deepening positively and significantly impact on financial stability in Nigeria during the period under investigation. Based on the research outcome, it is recommended that government and policymakers should use both fiscal and monetary policies to drive financial stability in Nigeria. Emphasis should be devoted to the use of broad money management to ensure financial stability in Nigeria.
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