Global Economic Melt –Down and the Nigerian Banking Industry-A Review

Abstract

The paper reviewed the impact of the recent global financial crisis on the Nigerian banking industry. The global financial crisis which originated from the united state of American has spread to other point of the world including Nigeria. This has caused the risk of global recession to be heightened significantly and the volatility of commodity prices, which is the main stay of most developing countries like Nigeria has increased further. It was discover that, there has been a decline in export of Nigeria, cash drain from the economy, increase in unemployment, fall in equity market and decline in remittance from abroad among others. And up till the present moment, Nigerian banking industry is yet to recover fully from the financial shock even when other economies have recovered. However, it was found out that problem comforting the Nigeria banking industry was not only the global phenomenon but large scale corruption which had made the banking sector unstable before the era of the global crisis. It was recommended therefore that the monetary authority should be more fortified by the government of Nigeria, so that they can perform maximally and restore confidence and trust in the Nigerian financial system. The enabling environment should be created in other to attract more and serious minded investors to the economy in other to be able to maintain a buffer against any future financial shock.