Nigerian Journal of Banking and Financial Issues (NJBFI)

THE EFFECT OF REGULATORY AND SUPERVISORY OVERSIGHT ON THE STABILITY OF FINANCIAL SERVICES INSTITUTIONS IN NIGERIA

Abstract

This study examines the impact of regulatory and supervisory oversight on the stability of financial services institutions in Nigeria, employing an ex post facto design with data from ten listed deposit money banks, the Central Bank of Nigeria and international databases covering period from 2015 to 2024. Using panel regression models, the study finds that both capital adequacy and supervisory oversight significantly enhance bank stability, while bank size also contributes positively. Conversely, interest rate fluctuations have a negligible effect, while money supply growth supports stability. The findings underscore the importance of robust regulatory and supervisory frameworks in safeguarding financial stability. Recommendations include strengthening capital requirements, enhancing supervisory measures, and maintaining balanced monetary policies.