As the financial reform phenomena advances, so do the understandings of it advance. Financial reform as Gencalo (2011) puts it “is a multifaceted phenomenon”. According to Ebong (2006), they are deliberate policy response to correct perceived or impending financial crises and subsequent failure. In other words, the different interventions of the federal government through the central bank of Nigeria and other financial institutions regulators to enable the financial sector and the economy recover from actual or impending disaster is what is here referred to as financial reform. On the expectations on financial reforms, Edirisuriya (2008) reported that financial sector reforms are expected to promote a more efficient allocation of resources and ensure that financial intermediation occurs as efficiently as possible. By implication, financial sector reforms brings competition in the financial markets, raises interest rate to encourage savings, thereby making funds available for investment, and hence lead to economic growth (Asamoah, 2008).
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