Global Financial Crisis and Financial Sector Development in Nigeria
G. E. Edame

Globalization generally has been conceptualized as increasing integration or interaction of national economic system through growth in international trade, investment and capital flows; thereby leading to economic growth. The rapid spread of the currency and stock market crisis from one country to another has been due to contagion effects, where the occurrence of the crisis in one country increases the probability of a similar crisis in another country. The financial crisis of the East Asian of 1997 and the Mexican peso crisis of 1994, and Argentina, 2001 are observed as the two contagion effects in the recent past. For the finance linkage, a financial crisis in one country may involve investors to reduce asset holdings in other countries (even if these other countries were not initially affected); if the investors expect positive correlation in asset returns across these countries. The dramatic fall in communication and computing costs over the past three decades, attempts to maintain barriers between national and global financial markets. Technological determination may help explain the broad trends towards financial liberalization since the 1970s. About six developing system in the world in 2000, with aggregate deposit share of about 6 percent of about 108 developing countries studied,80 had total bank deposits of less than $10 billion of which 42 had less than $1 billion. The tiny sizes of their financial systems reflect the size of their GDP. In 2000, it was found that the bank fund staff federal credit union (a bank for the staff of the IMF and the World Bank) had a balance sheet size target than those of banks in 60 poor countries put together. In Asia, Latin America, and Africa, regionalism is top of the agenda albeit with varying speeds and successes. Some countries managed to sustain rapid growth with just modest reforms, while others could not grow after implementation of a wide range of economic reforms in their economies. Moreover, similar economic reforms yielded vastly different responses. The main areas of concern where policy institutional change during the 1990s and 2005; Macroeconomic stabilization, trade liberalization, financial sector reforms, privatization and deregulation, public sector reform, democratization and it combined an analytical review of growth episodes with the views of practitioners, policy makers who had been in charge of implementing significant policy and institutional reforms during the 1990s.

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