Finance Companies, Central Bank of Nigeria and Economic Development

Abstract

This paper is an empirical study of Central Bank of Nigeria (CBN) regulatory activities , finance house activities and economic development, within the period 1992-2010, using gross domestic product GDP(dependent) as a  measure of economic  development, while Activities of Finance houses proxy by domestic credit and total assets, CBN activities proxy by the shareholders fund and minimum paid up capital, estimation of regression models and subsequent analysis of results using micro fit 4.1 econometric, statistical analytical  tool. The findings indicate that significant relationships existed between Finance house activities and economic development, and CBN regulatory activities in finance house has no significant relationship. Therefore, this calls for policy options that would favor the encouragement of existing finance houses and licensing of new ones to adequately carter for the needs of the overall economy..

Keywords: Economic development, Finance houses/companies, Money market, CBN, and GDP.