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International Journal of Law and Management

Risk-based regulation: the future of Nigerian banking industry

Kenneth Ikechukwu Ajibo
( University of Hull, UK Hull City United Kingdom )
Abstract :

This article seeks to argue that the Nigerian banking industry needs to adopt a risk-based regulation as a future regulatory model in the industry. The frequent distress and failures in the industry have shown that reliance on recapitalisation and on credit rating information by the supervisors and investors to determine the health of the financial institutions is less than satisfactory. This is more so when agency ratings suffer accountability deficits

This article posits that while the regulation of the credit ratings is necessary for institutional accountability, it is never a substitute for oversight functions and due diligence exercise for both the supervisors and investors in the industry. This exploratory research paper is structured to cover the origin of banking regulation in Nigeria, the recapitalised efforts by the regulators, the problem with the agency ratings and why the future of Nigerian banking regulation should be risk-based

This research paper posits that while reliance on recapitalization strategy and agency rating publications are relevant in banks the future of Nigerian banking regulation should be risk-based.

The Nigerian banking industry should develop effective risk-management structures in line with international regulatory framework.

Keywords :
Kenneth Ikechukwu Ajibo

Date Deposited : 28 Mar 2015 11:15

Last Modified : 28 Mar 2015 11:15

Official URL:

Volume 57, Number 3, - 2015 , ISSN 1754-243X

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