Shadow banking as a veritable platform for macroeconomic stability and economic growth in Nigeria

Abstract

This study intended to investigate the role of ‘Shadow Banking as a Veritable Platform for Macroeconomic Stability and Economic Growth in Nigeria’. To serve the purpose, the research objectives were so structured emphasising the positive aspects associated with shadow banking including monetary development. Additionally, the legislative facet concerning the implementation of shadow banking is also analysed. While reviewing the literature, it is analysed that the prior shreds of research contain contradicting elaboration about shadow banking. However, the advantages of implementing shadow banking ascertained that it could result in economic stability. To commence the research, the philosophical grounds of interpretivism were selected to analyse the subject area. However, mixed qualitative research was carried out by obtaining data from 25 managers associated with both operating as commercial and shadow banks in Nigeria including Zenith Bank Plc., United Bank for Africa Plc. and Access Bank Plc. The instrument used for data collection included a semi-structured interview questionnaire that assisted in analysing the contemporary practices of commercial banks and thus enabled the researcher in analysing the potential pros that can be derived through shadow banking. Additionally, for the conceptualisation of the subject area and to withstand the arguments of the current study, secondary sources were also used. Moreover, based on the potency of shadow banking, the study also referred to the infrastructural disparity of financial institutions in rural and urban settings and recommended that government should ensure the provision of such services and access to shadow banking by the unbanked population so as to bring economic stability in Nigeria.