SYSTEMIC RISK AND FINANCIAL SYSTEM INSTABILITY IN A RECESSED ECONOMY: NIGERIAN EXPERIENCE
Systemic risk is the risk associated with the collapse or failure of a company, industry, financial institution, or an entire economy. On the other hand, financial instability is concerned with an economy’s saving-investment nexus. The main objective of the study is to investigate the effect of systemic risk and financial instability in a recessed economy. The specific objectives are to determine the effect of systemic risk on the Nigerian economy and to examine the effect of financial instability on the Nigerian economy. The study adopted the survey method to achieve its objectives. The survey was designed to elicit responses from respondents on the impact of systemic risk and financial system instability in Nigeria. It was found that systemic risk and financial system instability negatively and significantly impact on a recessed economy. This implies that both systemic risk and financial instability may cause economic recession or worsen an already exiting situation.