Research Article

The Effect of Banking Sector Reforms on the Efficiency of the Nigerian Stock Market

Akintunde Ayeni1*, Daniang Dorathy Diyegun1, Tende Tende Bala2
1 Department of Banking and Finance, University of Jos
2 Department of Business Administration, Federal University Wukari
* Corresponding author: akintundeayeni6@gmail.com
Published: Dec, 2025
DOI: 10.67862/jbfr.2025.ts6jfkjg
Pages: 219-234
Views: 42
Downloads: 32

Abstract

This study sought to evaluate the effect of banking sector reforms on the efficiency of Nigerian stock market. The specific objectives are to; determine the effect of bank recapitalisation on the stock market efficiency in Nigeria, analyse the effect of prime interest rate on the stock market efficiency in Nigeria. The population of the study was the activities of all the Nigeria Stock Exchange Market as a single unit for twenty years (20) from 2005 to2024. Data got were analysed using panel regression with the aid of the fixed effect model as a tool for data analysis. The study found that bank recapitalisation has significant effect on Nigeria stock market efficiency and interest rate has no significant effect on Nigeria stock market efficiency. The study recommends that Central Bank of Nigeria (CBN) should continue to strengthen the regulatory framework to ensure that banks maintain adequate capital buffer; investors and policy makers should closely monitor other macroeconomic factors such as inflation exchange rates, and GDP growth which may have a more significant impact on stock market regulators and policymakers should consider implementing alternative measure to enhance stock market efficiency.

Keywords

Banking Sector Reforms Recapitalisation Prime Interest Rate Stock Market

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How to Cite

Ayeni, A., Diyegun, D. D., & Bala, T. T. (2025). The Effect of Banking Sector Reforms on the Efficiency of the Nigerian Stock Market. Journal of Banking and Finance Research, 1(1), 219-234. https://doi.org/10.67862/jbfr.2025.ts6jfkjg

A. Ayeni, D. D. Diyegun, and T. T. Bala, "The Effect of Banking Sector Reforms on the Efficiency of the Nigerian Stock Market," Journal of Banking and Finance Research, vol. 1, no. 1, pp. 219-234, December 2025. doi: 10.67862/jbfr.2025.ts6jfkjg

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