Banking Regulations: A Panacea for Banks’ Failure

Abstract

This study investigates how banking regulations influence bank failures in Nigeria. It draws on theoretical perspectives, including classical and monetarist views, and explores the concepts of banking regulation and bank failure. The research also analyzes the causes, consequences, and possible remedies for bank failures. The findings indicate that weak enforcement of prudential guidelines has significantly contributed to the persistent incidence of bank failures in Nigeria over time. Consequently, the study recommends the effective implementation of key regulatory measures such as strengthened risk management practices, improved corporate governance frameworks, higher capital adequacy requirements, robust supervisory mechanisms, enhanced financial literacy, protection for whistleblowers, and the introduction of comprehensive technology and cybersecurity regulations.