Main Article Content
It is now well recognized that an efficient capital market is indispensable for mobilizing both domestic and international capital. In many developing countries, however, paucity of capital has constituted a major constraint in economic development. Attempts have been made by developing countries to fast forward this important function of capital mobilization for development. This is a major rationale for the concluded first phase of banking reforms in Nigeria. This paper presents research findings on factors affecting the development of the capital market during a period characterized by bank reforms and significant capital market development in a fast growing emerging economy. The findings support the unanimous conclusion of economic theory that a well organized capital market supports the mobilization of domestic and international capital. Specifically the paper reports a positive relationship between bank sector reforms, as proxied by bank total deposits, and market capitalization. Again gross domestic product postively and significantly impacts on capital market development.It is recommended that to sustain the tempo of economic development in Nigeria strong regulations and robust governance mechanisms should be entrenched in capital market institutions
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