Banks are the most regulated of all business in Nigeria.  This is because of the nature of banking itself and its centrality to the effective functioning of the economic system.

The importance and centrality of the banking system in the development of an economy is obvious and beyond dispute.  It plays some roles which include financial intermediation provision of an efficient payment system and facilitating the implementation of monetary policy 

On intermediation the banking system mobilizes savings form the surplus and channel them to investment in operating the payment mechanism the system serves as a medium for exchange and in execution of monetary policy, the system serves as agents through which the policies are disseminated

However without banks arrangement savings and investment will not only be inefficient but may lead to less than optimum resources allocation.

Accordingly an efficient and effective system is indispensable not only for the promotion of efficient intermediation but also for the protection of the depositors  encouragement of a healthy competition and the stability of economy.

The degree of success of bank in performing the above functions however depends on the financial  and regulatory environment which in itself is a function of the totality of the environment in which it operate.