International Journal in Management & Social Science
Year : 2016, Volume : 4, Issue : 6
First page : ( 103) Last page : ( 114)
Online ISSN : 2321-1784.

The impact of banks on economic development in Nigeria (1981–2014)

Olusola Adeleye Joseph

Adeteye Olamigoke Sunday (Department of Banking & Finance Rufus Giwa Polytechnic, Owo)

Online published on 8 August, 2018.

Abstract

The Nigerian Banking Sector is highly regulated leading to financial disintegration which retarded the growth of the economy. The link between financial sector and the growth of the economy has been weak. The banks are declaring billions of naira as profit yet the real sector continues to be weak thereby reducing the productivity level of the economy. Most of the operators in the productive sectors are folding up due to the inability to get loans from the banks because of the cost of borrowing is too outrageous. The study applied the multiple regression and in order to find the long run relationship among the series, all the series were subjected to unit root test using augmented-Dickey-Fuller approach. The findings show that banks contribution impacted strongly on Nigeria economic growth.

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Keywords

Bank, Economic Growth, Savings, Aggregate, Deposit, Bank Credit.

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