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Deposit money bank lending and the growth of the private sector in nigeria

 

Table Of Contents


  • Title                                                                                                                           PageTitle Page       –           –           –           –           –           –           –           –           –           iDeclaration     –           –           –           –           –           –           –           –           –           iiCertification   –           –           –           –           –           –           –           –           –           iiiDedication –               –           –           –           –           –           –           –           –           ivAcknowledgement –   –           –           –           –           –           –           –           –           vTable of Contents –     –           –           –           –           –           –           –           –         viiList of Tables –           –           –           –           –           –           –           –           –           xAbstract –       –           –           –           –           –           –           –           –           –           xiCHAPTER ONE: INTRODUCTION1.1 Background to the Study –           –           –           –           –           –           –          
  • 11.2Statement of the Problem –           –           –           –           –           –           –          
  • 41.3Objectives of the Study –             –           –           –           –           –           –          
  • 81.4Research Questions         –           –           –           –           –           –           –          
  • 91.5Research Hypotheses       –           –           –           –           –           –           –          
  • 101.6Scope of the Study           –           –           –           –           –           –           –          
  • 101.7Limitations of the Study- –           –           –           –           –           –           –          
  • 111.6Significance of the Study –           –           –           –           –           –           –          
  • 111.9Organization of study       –           –           –           –           –           –           –          
  • 121.10Definition of terms –                   –           –           –           –           –           –           13CHAPTER TWO: REVIEW OF RELEVANT LITERATURE2.1       Conceptual Framework           –           –           –           –           –           –           152.
  • 1.1  Conceptual Overview of Deposit Money Banks       –           –           –           152.
  • 1.2  Developments in the Banking Sector             –           –           –           –           162.
  • 1.3  Deposit Money Banks’ Lending         –           –           –           –           –          
  • 212.2      The Private Sector     –           –           –           –           –           –           –           222.
  • 2.1  Types of Private Sector Businesses   –           –           –           –           –           232.
  • 2.2  Private and Public Sector Differences-         –           –           –           –           242.
  • 2.3  Positioning the Nigeria’s private sector for economic growth           –           252.
  • 2.4  Impact of Deposit Money Banks’ Lending on the Growth ofthe Nigerian Private Sector.   –           –           –           –           –           –          
  • 282.3      Theoretical Framework           –           –           –           –           –           –           292.
  • 3.1  Financial Intermediation Theory       –           –           –           –           –           292.
  • 3.2  Multiple-Lending Theory       –           –           –           –           –           –           312.
  • 3.3  Supply Leading Theory         –           –           –           –           –           –           322.
  • 3.4  Keynesian Theory of Consumption, Savings, Investment, andInterest Rate   –           –           –           –           –           –           –           –          
  • 332.4      Empirical Review       –           –           –           –           –           –           –           35CHAPTER THREE: RESEARCH METHODOLOGY3.1 Introduction-         –           –           –           –           –           –           –           –          
  • 423.2Research Design   –           –           –           –           –           –           –           –          
  • 423.3Types and Sources of Data –         –           –           –           –           –           –          
  • 433.4Area of Study       –           –           –           –           –           –           –           –          
  • 433.5Population of the study     –           –           –           –           –           –           –          
  • 433.6Method of Data Analysis –           –           –           –           –           –          
  • 433.7Model Specification         –           –           –           –           –           –           –           44CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION4.1 Introduction-         –           –           –           –           –           –           –           –          
  • 464.2Presentation of data-         –           –           –           –           –           –           `-        
  • 474.3Relationship Analysis       –           –           –           –           –           –           –           484.
  • 3.1Testing of Hypothesis One       –           –           –           –           –           –           494.
  • 3.2Testing of Hypothesis Two       –           –           –           –           –           –           544.
  • 3.3Discussion of Findings- –           –           –           –           –           –           59CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION5.1 Summary – –           –           –           –           –           –           –           –          
  • 615.2Conclusion           –           –           –           –           –           –           –           –          
  • 635.3Recommendations –           –           –           –           –           –           –           64References     –           –           –           –           –           –           –           –           –           66  LIST OF TABLESTable 4.1: Variables of study –           –           –           –           –           –           –           47Table 4.2: Relationship between bank loans anddomestic private Investments. –           –           –           –           –           –           50Table 4.3: Regression Result Showing relationship betweenbank loans and manufacturing output growth –           –           –           –           55

Thesis Abstract

This study is aimed at
examining the effect of deposit money bank lending on the growth of private sector
in Nigeria between 1995 and 2015. This study adopted the expost facto research
design, in order to achieve the objectives stated in the study. Data used in
the study was obtained through secondary sources from CBN statistical bulletin
and, internet browsing, etc. The ordinary least square multiple regression
technique was used to test the hypotheses stated in the study. From the
findings, it was discovered that deposit money bank lending has a significant
relationship with domestic private investments and manufacturing output as
indicators of private sector growth. It was also realized that bank loans was statistically
related with domestic private investments, while money supply indicated a
statistically significant relationship with Manufacturing Output. It was
concluded that deposit money bank lending has a significant positive effect on
the growth of the private sector in Nigeria. Therefore, it was recommended that
greater efforts should be structured toward increased short, medium and long
term loans to private sector investors, as well as the manufacturing sector,
agricultural sector and SMEs, as they constitute an integral part of the growth
and transformation process of an economy like that of Nigeri
a.

In
a modern economic system, there is a distinction between the surplus and
deficit economic units and consequently a separation of the savings and
investment mechanism. This has necessitated the existence of financial
institutions whose jobs include the transfer or remission of funds from savers
to investors (borrowers) (Levine, 1997). One of such institutions are the
deposit money banks. Shittu (2012) opines that the intermediation roles of the
deposit money banks place them in a position of trustees of the savings of the
widely dispersed surplus economic units as well as the determinant of the rate
and shape of the economic development.

The
Nigerian financial system is dominated by the banking sector, especially the
deposit money banks which has the largest share of deposits in the economy and
also provides the foundation for the development of financial system. Deposit
money banks are financial institutions that provide financial services, such
as, acceptance of deposits, issuance of loans and advances, mortgage lending
and other financial products, such as savings accounts, current accounts,
certificates of deposit, among others. According to the mainstream theory,
deposit money banks act as financial i


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