Financial Regulation Is Crucial For Economic Growth

By

ACKNOWLEDGEMENT

I would like to thank my supervisors, friends and family, without their support this research study would not have been possible.

DECLARATION

I adjudge that the entire content of this dissertation is entirely my own work; the content used in this dissertation has not been submitted before in any educational institution and represents my own opinion.

Signed __________________ Date _________________

ABSTRACT

The Regulation of the financial system can have a serious impact on the growth and stability of an economy. Financial institutions facilitate the investment we need to create growth in the economy and as such provides the framework for the activities of our wider economy. It is therefore essential that we regulate the financial services sector by constructing a stable process that will allow economic growth and The ability to achieve this lies in getting regulation right

The study will look at the regulation of banking and securities markets in Nigeria and compare it with the UK position. It will also look at legal components the provisions and legislations that govern this area. Given the important financial intermediation role of banks in an economy, their high degree of sensitivity to potential difficulties arising from ineffective corporate governance and the need to safeguard depositors' funds, corporate governance for banking organisations is great importance to the international financial system and merits targeted supervisory guidance in the broad sense of licensing, enforcement, sanctioning and crisis management and disclosure standard. It will also look at the role of government both national and internationally, the effect of EU regulation and the Basel committee on UK and the regional approach to financial regulation in Nigeria looking at ECOWAS and WAMZ.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 3: METHODOLOGY1

Introduction1

Research Philosophy1

Research Methodology2

Methodological Approach2

Justification of Research Method2

Research design3

Method of Analysis3

Data collection Techniques3

Data Collection Sources4

Reliability and validity4

Ethical Concerns5

CHAPTER 4: ANALYSIS AND FINDINGS6

History of UK and Nigerian Financial Sectors6

Role of Supervisory Body9

Licensing10

Enforcement10

Sanctioning11

Protecting Depositors11

Issues in Security System of UK and Nigeria11

Insider Dealing13

Impact of Government Regulation on Financial Market in Nigeria and UK13

FSA in UK15

IOSCO in UK16

SEC in Nigeria17

International Regulatory Bodies19

Financial Crisis and Inadequate Regulatory Framework20

Role of Central Banks in Financial Crisis21

Role of Investment Banks in Financial Crisis22

Basel Committee24

Description of ECOWAS25

Member States of ECOWAS27

Aims and Objectives of ECOWAS33

WAMZ: Financial Regulation in Nigeria33

Banking Reforms in Nigeria35

Financial Stability in African Countries37

Impact of Legal Framework on Financial System39

Importance of Financial Development for Economic Growth39

CHAPTER 5:CONCLUSION41

Financial Performance of UK42

Past Studies on Economic Development44

REFERENCES45

CHAPTER 3: METHODOLOGY

Introduction

The research method that has been adopted within research study is the qualitative research method. The qualitative research method is an important research methodology that has been performed by taking into account past studies on the financial regulations and the economic growth. The study will adopt the secondary qualitative method for analysing the research topic. The secondary qualitative methods would be used for the analysis of the research topic by taking into account the past studies and analysing the major studies and relationships between the financial regulation and economic growth. The topic of the study that is “Financial Regulation Is Crucial For Economic Growth” can be explained ...