THE IMPACT OF INTEREST RATE DEREGULATION ON COMMERCIAL BANKS’ LENDING OPERATIONS IN NIGERIA.

Thesis Abstract

ABSTRACT Interest rate deregulation is a significant policy change that has implications for the financial sector, particularly commercial banks and their lending operations. This study aims to investigate the impact of interest rate deregulation on commercial banks' lending operations in Nigeria. The deregulation of interest rates in Nigeria in recent years has led to increased competition among banks, as they are no longer bound by strict interest rate ceilings. This study seeks to examine how this deregulation has influenced commercial banks' lending practices, including the terms and conditions of loans, the volume of loans issued, and the risk management strategies employed by banks. The research will employ a mixed-methods approach, combining quantitative analysis of financial data from commercial banks with qualitative interviews with bank executives and regulators. By analyzing data on interest rates, loan volumes, and risk management practices before and after deregulation, this study aims to provide a comprehensive assessment of the impact of interest rate deregulation on commercial banks' lending operations. The qualitative interviews will offer insights into the decision-making processes within banks and how they have adjusted their lending strategies in response to deregulation. The findings of this study are expected to contribute to the existing literature on the effects of interest rate deregulation on financial institutions, particularly in the context of emerging economies like Nigeria. Understanding how interest rate deregulation has influenced commercial banks' lending operations can have important implications for policymakers, regulators, and bank executives. By shedding light on the impact of deregulation, this research can inform future policy decisions aimed at promoting a stable and efficient financial system in Nigeria. Overall, this study addresses an important gap in the literature by providing a detailed analysis of the impact of interest rate deregulation on commercial banks' lending operations in Nigeria. By combining quantitative data analysis with qualitative insights from key stakeholders, this research offers a comprehensive understanding of how deregulation has shaped banks' lending practices. The findings of this study are expected to have implications for policymakers, regulators, and financial institutions in Nigeria and other emerging economies facing similar policy changes.