As integration proceeds, financial institutions will increasingly engage in cross-border business. Furthermore, this is likely to bring a change in the transmission channels for systemic risk, notably as a result of a possible increase in the risks of cross-border contagion.
A few Nigerian banks, mainly due to huge concentrations in their exposure to certain sectors (capital market and oil and gas being the prominent ones), but due to a general weakness in risk management and corporate governance, have continued to display signs of failure.