Bank financial intermediaries and economic growth in Nigeria
DOI:
https://doi.org/10.51359/2594-8040.2022.256987Keywords:
Bank Financial Intermediaries, Economic Growth, Deposit Money Banks, Microfinance Banks, Real SectorAbstract
This study was motivated by Nigerian banks' inability to provide enough credit towards the real economy sector. The paper investigated the connection between bank financial intermediaries and Nigerian economic growth. The main objective is to evaluate the effect of financial intermediaries on the expansion of Nigeria's economy. The specific objectives are to determine the significant relationship between the deposit money banks credit and overall economic output in Nigeria and to explore the significant connection with both Micro finance bank credit and overall economic output in Nigeria. To accomplish the intended goal, regression analysis was applied in the study. The Central Bank of Nigeria Statistical Report was used as the data source. According to results there was a substantial association between deposit money bank credit and Nigeria's Gross Domestic Product (GDP) over the analysis period. Additionally, there was a strong correlation in Credit Efficiency between Microfinance bank credit and overall economic output. In order to expand their capacity to pay for customer withdrawals and to enhance the credit facilities they make to customers for commercial purposes in effort to expand the economic output, the study advises deposit money institutions to promote a higher degree of liquidity. In order to boost GDP, the report also suggests that microfinance banks provide enough credit to the real sector for useful purposes.
References
Adediran, O., Ekejiuba, C. P., Matthew, A. O., & Adegboye, F. B. (2017). Co-integration analysis of financial intermediation and economic growth in Nigeria. Journal of Internet Banking and Commerce, 22(8), 1-12.
Akinjare, V. (2016). Monetary policy and its effectiveness on economic development in Nigeria. International Business Management, 10(22), 5336-5340.
Biplob, N. K., & Halder, P. (2018). Financial sector development and economic growth: empirical evidence from Bangladesh. Asian Economic and Financial Review, 8(6), 799-814.
Efayena, O. (2014). Financial intermediaries and economic growth: The Nigerian evidence. Acta Universitatis Danubius. Economica, 10(3), 125-135.
Emecheta, B. C., & Ibe, R. C. (2014). Impact of bank credit on economic growth in Nigeria: application of Reduced Vector Autoregressive (VAR) technique. European Journal of Accounting Auditing and Finance Research, 2(9), 11-21.
Greenwood, J., & Jovanovic, B. (1990), Financial development, growth and the distribution of income. Journal of Political Economy, 98(5), 1076-1107.
Jalil, A., & Ma, Y. (2008). Financial development and economic growth: Time series evidence from Pakistan and China. Journal of Economic Cooperation, 29(2), 29-68.
Kaushal, L. A., & Pathak, N. (2015). The Causal Relationship among Economic Growth, Financial Development and Trade Openness in Indian Economy. International Journal of Economic Perspectives, 9(2), 5-22.
Murtala, B.U., Siba, D., Ahmad, U.G., Muhammad, R.D., & Ali, U.A. (2015). An empirical study on the relationship between financial intermediation and economic growth in Nigeria: A Cointegration and Causality Analysis. LOSR Journal of Economic and Financial, 6 (4), 15-31.
Ndako, U. B. (2017). Financial development, investment and economic growth: Evidence from Nigeria. Journal of Reviews on Global Economics, 6, 33-41.
Ndubuisi, P. (2017). An examination of the relationship between financial development and economic growth in Nigeria: Application of multivariate var framework. African Research Review, 11(2), 160-177.
O'Sullivan, A. & Sheffrin, S. M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 272.
Ogboghro, V.I. (2013), Financial Institutions and Markets in Nigeria (Edo): Beulahland Publication.
Ogege, S., & Boloupremo, T. (2014). Deposit money banks and economic growth in Nigeria. Financial Asset and Investing, (1), 41-50.
Okpara, G. C., Onoh, A. N., Ogbonna, B. M., & Iheanacho, E. (2018). Econometrics Analysis of Financial Development and Economic Growth: Evidence from Nigeria. Global Journal of Management and Business Research, 18(2).
Ono, S. (2017). Financial development and economic growth nexus in Russia. Russian Journal of Economics, 3(3), 321–332.
Patrick H. (1966). Financial development and economic growth in underdevelopment countries. Economic Development and Cultural Change, 14 (2).
Rajan, R.G., & L. Zingales (1998). Financial Dependence and Growth, American Economic Review, 88(3), 559-86.
Qamruzzaman, M., & Jianguo, W. (2017). Financial innovation and economic growth in Bangladesh. Financial Innovation, 3(1), 1-24.
Shahbaz, M., Rehman, I.U., & Muzaffar, A.T. (2015). Re-visiting financial development and economic growth nexus: The role of capitalization in Bangladesh. South African Journal of Economics, 83(3), 452-471.
Shittu, A. I. (2012). Financial intermediation and economic growth in Nigeria. British Journal of Arts and Social Science, 4(2), 164-179.
Siklos, P. (2001). Money, Banking, and Financial Institutions: Canada in the Global Environment. Toronto: McGraw-Hill Ryerson. p. 35.
Sobodu, O. O., & Akiode, P. O. (1994). Bank performance, supervision and privatization in Nigeria: Analysing the transition to a deregulated economy. In Workshop of the African Economic Research Consortium, Nairobi (pp. 3-8).
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Joseph Adeyinka Adewole
This work is licensed under a Creative Commons Attribution 4.0 International License.
- Os autores autorizam a publicação do artigo na revista.
- As opiniões e as ideias expressas nos artigos são de inteira responsabilidade dos autores.
- Os autores garantem que o artigo não é fruto de plágio. Caso contrário, poderá sofrer as sanções cabíveis à situação.
- Os editores têm permissão para efetuar ajustes textuais e de formatação para adequar o artigo às normas de publicação da revista.
- Esta revista, seguindo as recomendações do movimento de Acesso Aberto, proporciona seu conteúdo em Full Open Access. Assim os autores conservam todos seus direitos permitindo que a JPM possa publicar seus artigos e disponibilizar pra toda a comunidade.
- Os conteúdos da JPM estão licenciados sob uma Licença Creative Commons Attribution 4.0 Internacional (CC BY 4.0).
Assim, qualquer usuário tem direito de:
- Compartilhar — copiar, baixar, imprimir ou redistribuir o material em qualquer suporte ou formato
- Adaptar — remixar, transformar, e criar a partir do material para qualquer fim, mesmo que comercial.
De acordo com os seguintes termos:
- Atribuição — Você deve dar o crédito apropriado, prover um link para a licença e indicar se mudanças foram feitas. Você deve fazê-lo em qualquer circunstância razoável, mas de maneira alguma que sugira ao licenciante a apoiar você ou o seu uso.
- Sem restrições adicionais — Você não pode aplicar termos jurídicos ou medidas de caráter tecnológico que restrinjam legalmente outros de fazerem algo que a licença permita.
________________________
Copyright Statement
- The authors authorize the publication of the article in the journal.
- The opinions and ideas expressed in articles are the sole responsibility of the authors.
- The authors guarantee that the article is not the result of plagiarism. Failure to do so may result in penalties for the situation.
- Editors are allowed to make textual and formatting adjustments to fit the article into the publication standards of the journal.
- This journal, following the recommendations of the Open Access movement, provides its content in Full Open Access. Thus, authors retain all their rights, allowing JPM to publish their articles and make them available to the entire community.
- JPM's contents are licensed under a Creative Commons Attribution 4.0 International (CC BY 4.0) license.
Thus, any user has the right to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
Under the following terms:
- Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
