This study examines the effect of regulatory reforms on bank stability in Nigeria over the period 2000 to 2023, with a focus on Central Bank of Nigeria (CBN) policy interventions, including the 2004 bank recapitalisation exercise, the 2009 post-global financial crisis reforms, and the 2023 recapitalisation directive. Using aggregate sector-level time series data and ordinary least squares (OLS) regression with Newey-West heteroscedasticity and autocorrelation consistent (HAC) standard errors, the study estimates three progressive models controlling for bank size, capital adequacy, asset quality, liquidity, profitability, operational efficiency, GDP growth, and bank type. The empirical results reveal that regulatory reform exerts a statistically significant and positive effect on bank stability (β = 2.874, p < 0.01), validating the hypothesis that policy-driven supervisory improvements enhance systemic financial soundness. Capital adequacy and profitability are the strongest bank-specific determinants of stability, while non-performing loans and operational inefficiency exert significantly negative effects. GDP growth reinforces stability through improved macroeconomic conditions. Post-estimation diagnostics confirm the absence of autocorrelation, heteroscedasticity, multicollinearity, and misspecification, while CUSUM tests confirm parameter stability across reform periods. These findings carry significant implications for banking sector regulators, policymakers, and financial stability boards in sub-Saharan Africa and other emerging economies navigating post-crisis institutional reforms. The study contributes to the scant time-series evidence on regulatory reform and bank stability in Nigeria and underscores the critical role of sustained, well-sequenced regulatory interventions in building resilient banking systems
ONIPE ADABENEGE YAHAYA (Thu,) studied this question.