BVN REGULATORY FRAMEWORK AND BANKING SYSTEM STABILITY IN NIGERIA

Abstract

This study examined the effect of BVN Regulatory Framework on banking system Stability in Nigeria. The study adopted a survey research design and Primary data for this study were obtained through questionnaires, which were administered to 213 management staff of the ten (10) selected banks. The data was analyzed using descriptive statistics while spearman rank correlation was used to test the hypotheses. The result indicates that BVN Regulatory Framework have a significant effect on bank capital adequacy, bank liquidity and asset quality in Nigeria. The study concludes that BVN Regulatory Framework have a significant effect on banking system stability in Nigeria. It was recommended that Banks must ensure that Customers Bank Accounts are protected from unauthorized access while implementing BVN regulatory framework so as to avoid running into liquidity problem; In other to maintain a sound capital base, banks must ensure that staff comply strictly to BVN regulatory framework in it operation and Banks should continue to make effective use of BVN regulatory framework in the course of lending and administration so as to maintain high credit portfolio while avoiding cases of non-performing loan.