NIGERIAN BANKING AND ECONOMIC GROWTH POST RECAPITALISATION

Maryam Abdu

Abstract


The global financial crises which originated in the United States and spread to the Nigerian financial market had an effect on the banking industry. Banks were
recapitalised to ensure healthier operations, protect depositors' funds and
encourage economic growth. The problem before the study is that studies have not been conducted to investigate total assets and deposit liabilities, and that studies did not look at post recapitalisations of merchant banks, commercial banks and noninterest banks up to 2017 financial year end. The major objective of the paper is to evaluate Nigerian banking, post recapitalisation on economic growth in Nigeria. The hypothesis of the study is that the sizes of Nigerian banks have no effect on economic growth in Nigeria. The research is quantitative and ex post facto. Secondary data was used for the research for twelve years post recapitalisation from 2006 to 2017. A multiple regression model was formulated with the dependent variable as gross domestic product and the independent variables as total assets and deposit liabilities of banks. Stata was used to analyse the results and the results showed that the size of Nigerian banks have an effect on economic growth in Nigeria. It was recommended that banks in Nigeria should continue to improve on their size so as to generate the needed economic growth in Nigeria.


Keywords


Commercial Banks, Merchant Banks, Non-Interest Banks, Recapitalisation

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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