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Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth

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10.10.2023

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Regulators interviewed for this study noted that the examination philosophy was toidentify adherence to rules and regulations, not adherence to general principles of safetyand soundness. Because most S&L assets were fixed-rate home mortgages, credit-qualityproblems were rare. Loan evaluations were appraisal driven, and in the past the value ofcollateral had consistently appreciated. Thus, losses on home mortgages were rare, even inthe event of foreclosure. Nevertheless, not until 1987 did S&L examiners have the author-ity either to classify assets according to likelihood of repayment or to force institutions toreserve for losses on a timely basis. Moreover, examiner recommendations were often notfollowed up...
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Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth

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