The banking system growth through capitalisations in Nigeria produced some after-effects, both salutary
and otherwise on the other financial institutions. The major objective of this paper was to find out the
impact of the growth of the banking system on the OFIs. It used primary and secondary data to assess the
impact of the growth and regulation on the OFIs. The paper adapted the Regulatory Pressure Index to
assess the perception of regulation and supervision of the OFIs with granger causality and regressions
and the main techniques of estimation. The results indicate that the bank growth had positively impacted
the Primary Mortgage Institutions and the Microfinance banks while it has a negative near-significant
effect on the Finance Houses. The results of the nine RPI objectives indicate that operators agree that
there is inadequate supervision in the areas of capital adequacy, liquidity and products offerings of the
OFIs. The paper concludes by recommending the change in the mode of supervision and the
strengthening the Other Financial Institutions Department of the monetary authority or establishment of
a new one to oversee and adequately regulate the activities of the OFIs
