The Role of Banks in the Nigerian Economy
The Role of Banks in the Nigerian Economy
Abstract on The Role of Banks in the Nigerian Economy
The main aim of this research is to examine the role of banks in the Nigeria economy. Four objectives were raised to ascertain the role of bank in the Nigeria economy. The first examine the contribution of bank deposits, the second examine the contribution of bank loans while the third and the last examine the roles of bank revenue and inclusion rate respectively. This study adopted survey, ex post facto and descriptive research design. Also, multiple regression analysis was used to test the hypothesis in this study. The results revealed a significant relationship between total bank loan and revenue between 1995 and 2012 while there is no significant relationship between bank deposits and inclusion rate within the period under review. This study relies purely on secondary data, and using multiple regression models, the study find out that banks accounts for about 95.1% variation in economic growth in Nigeria for the period under study. The study concludes that there is a statistically significant role of bank in the Nigeria economy. This, suggest that the performance of the Nigerian economy is greatly influence by bank services. The study recommends that the federal government of Nigeria through the central bank of Nigeria (CBN) should strengthened the banking sector to encourage deposits to ensure an improve credit flow to the activity sectors because of its strategic importance in creating and generating growth of the economy.