The Contributions of Banks Reform to Economic Development in Nigeria

Banking system occupies a unique position in every economy and that is why it often attracts more than a casual regulatory attention. The banks act as catalyst to economic development. This review examined the contributions of banks to the economic development in Nigeria. The study highlighted banks as efficient mechanism for mobilizing financial resources and allocating same for productive investment. Given the key roles that banks play in facilitating economic growth and financing developmental projects, particularly key infrastructure, agriculture and industry, most emerging market economies have been known to use the domestic financial institutions to execute real sector big ticket projects. Therefore, it is recommended that Nigerian banks to compete favourably in the competitive global financial system, the current reforms in Nigeria banking system must be sustained and strengthened.