Deposit Money Bank Lending And The Growth Of The Private Sector In Nigeria

Deposit Money Bank Lending And The Growth Of The Private Sector In Nigeria

Abstract

This study is aimed at examining the effect of deposit plutocrat bank lending on the growth of private sector in Nigeria between 1995 and 2015. This study espoused the expost facto exploration design, in order to achieve the objects stated in the study. Data used in the study was attained through secondary sources from CBN statistical bulletin and, internet browsing, etc. The ordinary least square multiple retrogression fashion was used to test the suppositions stated in the study. From the findings, it was discovered that deposit plutocrat bank lending has a significant relationship with domestic private investments and manufacturing affair as pointers of private sector growth. It was also realized that bank loans was statistically related with domestic private investments, while plutocrat force indicated a statistically significant relationship with Manufacturing Affair. It was concluded that deposit plutocrat bank lending has a significant positive effect on the growth of the private sector in Nigeria. thus, it was recommended that lesser sweats should be structured toward increased short, medium and long term loans to private sector investors, as well as the manufacturing sector, agrarian sector and SMEs, as they constitute an integral part of the growth and metamorphosis process of an frugality like that of Nigeria.

Chapter One

Preface

Background to the Study

In a ultramodern profitable system, there’s a distinction between the fat and deficiency profitable units and accordingly a separation of the savings and investment medium. This has needed the actuality of fiscal institutions whose jobs include the transfer or absolution of finances from saviors to investors( borrowers)( Levine, 1997). One of similar institutions are the deposit plutocrat banks. Shittu( 2012) opines that the intermediation places of the deposit plutocrat banks place them in a position of trustees of the savings of the extensively dispersed fat profitable units as well as the determinant of the rate and shape of the profitable development.

The Nigerian fiscal system is dominated by the banking sector, especially the deposit plutocrat banks which has the largest share of deposits in the frugality and also provides the foundation for the development of fiscal system. Deposit plutocrat banks are fiscal institutions that give fiscal services, similar as, acceptance of deposits, allocation of loans and advances, mortgage lending and other fiscal products, similar as savings accounts, current accounts, instruments of deposit, among others. According to the mainstream proposition, deposit plutocrat banks act as fiscal.