Tag Archives: Financial System

An Analysis of the Impact of Financial Sector Reforms on Economic Growth in Cameroon (Published)

The ultimate task of this study is to examine the nature and extent of the influence which financial sector development, resulting from the financial sector reforms implemented in Cameroon has on the economic growth of the country from 1980 to 2015. The evaluation covers the roles of three key financial sector indicators (the ratio of broad money supply to GDP, the banking assets ratio, and the interest rate spread) each of which reflects a different facet of financial sector development.  To achieve the best needed results we tested and adjusted the data to obtain stationarity. Thereafter we proceeded to determining the quantitative relationships between the dependent and the independent variables with the use of the Vector Autoregression (VAR) technique. Parameter estimates were empirically tested. We found out that all the financial sector development variables tested were economically and statistically relevant in at least one of the four VAR equations generated while in two of the four VAR equations the values of the adjusted R2 indicate that more than 70% of variations in the current real GDP in Cameroon is accounted for by the lagged financial sector development indicators included in the models. Based on the above results we conclude that: there exist a strong positive long run relationship between financial sector development and economic growth in Cameroon. This result confirms that creating the conditions for a deep and efficient financial system can contribute robustly to sustained economic growth in Cameroon. Based on the findings, it is suggested that. Based on the findings of this study, we recommend continuous efforts to enhance financial intermediation, deepen the Douala stock exchange market and fully liberalize interest rates in the country.

Keywords: Financial Liberalisation, Financial Repression, Financial System, Financial deepening

CASHLESS ECONOMY AND FINANCIAL STATEMENT REPORTING IN NIGERIA (Published)

This article examined development and challenges of cashless policy in Nigerian economy and determined its effect on business transactions and financial reporting. Sample size was drawn from the population in South East of Nigeria. Questionnaire and oral interview were main research instruments; analysis of data and test of hypotheses were carried out using Z – test statistics and Chi-square. Main findings in the study include; Stakeholders in the financial statements of corporate entities place more credence on financial statements emanating from cashless-based economies because of its effect on reduced tax evasion, inflation and revenue leakages, easier to comply with auditing standards and effective performance of business transactions. Challenges on adequate and standard infrastructure, low level of literacy and poor banking habits were revealed. There was also this perceived increased cost on the part of vendors while disposing of their wares which would have been avoided if the transaction was by cash.

Keywords: Business Transaction, Cashless, Economy, Financial Reporting, Financial System

Effect of Bank Lending Rate on the Performance of Nigerian Deposit Money Banks (Published)

This study examined the impact of bank lending rate on the performance of Nigerian Deposit Money Banks between 2000 and 2010. It specifically determined the effects of lending rate and monetary policy rate on the performance of Nigerian Deposit Money Banks and analyzed how bank lending rate policy affects the performance of Nigerian deposit money banks. The study utilized secondary data econometrics in a regression, where time-series and quantitative design were combined and estimated. The result confirmed that the lending rate and monetary policy rate has significant and positive effects on the performance of Nigerian deposit money banks. The implication of these is that lending rate and monetary policy rate are true parameter of measuring bank performance. We therefore recommend that government should adopt policies that will help Nigerian deposit money banks to improve on their performance and there is need to strengthen bank lending rate policy through effective and efficient regulation and supervisory framework.

Keywords: Bank, Bank Performance, Co-integration, Financial System, Lending Rate