Effect of financial development on financial innovation in Nigeria.

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Date
2019-10-06
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Published by Faculty of Economics and Business, Diponegoro University Indonesia
Abstract
Financial sector is crucial for the development of a well-functioning market as it facilitate capital inflows, mobilize savings for productive investment and facilitates the conduct and growth of an economy in the world. Despite the importance of financial sector development in Nigeria, financial institution operating in financial market were confronted with drastic changes where by old ways of doing business were no longer profitable and sustainable and unable to acquire fund with their traditional financial instruments. Against this background, the study investigated the effect of financial sector development on financial innovation in Nigeria. The study employed secondary data obtained from central bank of Nigeria statistical bulletin and World Bank database between 2011 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 the in depth of finance. The study recommends policy makers should design policies which will promote and enhance the relationship between financial innovation and financial development in other to increase the supply and provision of financial service
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Oluganna E., Lawal, T. and Daniya, A. A. (2018): Effect of financial development on financial innovation in Nigeria. Jurnal Akuntansi Dan Auditing, 15 (2): 150-164. DOI:10.14710/jaa.15.2.150-164