Abstract
Financial sector is crucial for the development of a well-functioning market as it facilitate capitalinflows, mobilize savings for productive investment and facilitates the conduct and growth of aneconomy in the world. Despite the importance of financial sector development in Nigeria, financialinstitution operating in financial market were confronted with drastic changes where by old waysof doing business were no longer profitable and sustainable and unable to acquire fund with theirtraditional financial instruments. Against this background, the study investigated the effect offinancial sector development on financial innovation in Nigeria. The study employed secondarydata obtained from central bank of Nigeria statistical bulletin and World Bank database between2011 and 2017. The data obtained was subjected to system General Method of Analysis (GMM)estimator. The study concluded that upward trend of process innovation significantly influence thein depth of finance. The study recommends policy makers should design policies which willpromote and enhance the relationship between financial innovation and financial development inother to increase the supply and provision of financial service.
Highlights
Financial sector development is one of the strong pillars and a determinant of a wellfunctioning market as it facilitate capital inflows, mobilize savings for productive investment and facilitates the conduct and growth of an economy in the world
Both contemporaneous and lag of mobile payment (MPY) and automated teller machines (ATMs) are significant at 5% level of significance while lag of POS and contemporaneous value of WET are significant at 10% level of significance
The study examined the effect of financial innovation on financial sector development in Nigeria from 2011 to 2017 using the auto regressive distributed lag (ARDL)
Summary
Financial sector development is one of the strong pillars and a determinant of a wellfunctioning market as it facilitate capital inflows, mobilize savings for productive investment and facilitates the conduct and growth of an economy in the world. In line with the problem statement, the study seeks to examine the effect of financial innovation on financial sector development in the Nigeria. The study revealed that financial innovations have significant influence on financial sector development and boosting market efficiency.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
