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Cross-border expansion of Nigerian banks: has it improved the continent’s regulatory and supervisory frameworks?

Feb 28, 2014 | S.O. Alade | Bank for International Settlements (BIS)
This paper examines the effect of the cross-border expansion of Nigerian banks in the West African Monetary Zone (WAMZ), which includes: The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone. These countries were selected as 10 Nigerian banks operate in these countries and they have the most collaborative relationship in the area of supervision and regulation with the Nigerian authority. The paper covers the period 2005–12, capturing the period before and after the cross-border expansion of Nigerian banks and explores the notion that the presence of foreign banks helps build a domestic banking supervisory and legal framework, and enhance overall transparency in both home and host countries.