Download or read book The Impact of Bank Credit on Industrial Development of Nigeria written by Damian Nwosu and published by GRIN Verlag. This book was released on 2013-06-27 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2011 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, , language: English, abstract: The ongoing financial crisis has reinforced the importance of capital in the industrial development and economic growth of a country. In the last two years, industries have closed down owing to lack of capital occasioned by the global financial meltdown. From America, London, other European countries, Asia and Africa, governments have had to intervene in other to bail out some ailing industries and forestall total collapse of the economy. These show the importance of credit either from bank or any other means to industries. Recognizing the importance of capital in economic growth, Mackinnon and Shaw (1973), outlined the procedures for strengthening the financial sector of an economy so as to enable it play the all important role of providing capital for industrial development. Among the basic explanations for this is that the financial sector serves to reallocate funds from the supply side, given their investment opportunities, to the demand side with a shortage of funds. Thus, an economy with well-developed financial institutions will be better able to allocate resources to industries that yield the highest returns. The manufacturing sector is a catalyst to the modern economy and has a many dynamic benefits that are crucial for economic transformation, (Loto, 2005). The manufacturing sector is a leading sector. It helps to increase productivity in relation to import substitution, export expansion, creating foreign exchange earning capacity, raising employment and per capital income which according to Loto, (2005), widens the scope of consumption in dynamic patterns. Ogwuma, (1995) asserts that the manufacturing sector promotes the growth of investment at a faster rate than any other sector of the economy as well as wider and more efficient linkages among different sectors.

Download or read book An Empirical Assessment of the Impact of Commercial Banks Lending on Economic Development of Nigeria written by Felicia Anyanwu and published by . This book was released on 2017 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: The pace of development in Nigeria economy which is rich in oil is not commensurate with the revenue from crude oil exports coupled with the increasing banking credit to the economy. This raises a question on efficiency and effectiveness of banks' in discharging it function of credit mobilization and distribution of resources to deficit economic units. In this regard, this study empirically assesses the impact of commercial banks' lending on economic development of Nigeria from 1986 to 2015 by specifically ascertaining the impact of commercial banks' lending on real gross domestic product and index of industrial production. The data sourced from the Central Bank of Nigeria statistical bulletin were diagnosed for serial correlation, heteroskedasticity and Ramsey Reset model fitness specification and stationarity. The Johansen co-integration envisaged a long run relationship between commercial banks' lending and gross domestic product but such could be said for index of industrial production. The granger impact assessment result shows that commercial banks' lending has significant impact on real gross domestic product and real gross domestic product on the other hand, has significant impact on credit to private sector. Index of industrial production was not significantly influenced by commercial banks' lending activities. The vector error correction model depicts that for achievement of long term growth and development of the Nigerian economy, commercial banks' lending is very pivotal as the high interest rate charged by commercial banks' remain a threat to the positive influence of banks' credit to the economy. The Central Bank of Nigeria should implement regulation to stop banks from centring loans and advances to a particular sector which is, oil and gas to improve credit flow to other strategic sectors, especially agriculture and industries to increase their contributions to gross domestic product of Nigeria. The monetary policy of the Central Bank of Nigeria should complement fiscal policies of the government to reduce the level of inflation in country, having regard to its negative effect on index of industrial production.

Download or read book Effects of Financial Sector Reforms on Economic Growth The Case of Nigeria written by Angel Okonkwo and published by GRIN Verlag. This book was released on 2021-10-18 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (undergraduate) from the year 2019 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 4.60, , course: Banking and Finance, language: English, abstract: The objectives of this study includes to examine the effects of banking sector reforms on bank performance, savings, investments, developments of the Nigerian Banking System and Economic Growth. The banking sector is without no doubt a very essential part of the economy of a nation and any reforms carried out in it extend to other parts of the economy representing a transformational moment for the economy and its people. So it remains a nationwide challenge that the Nigerian banking sector and it’s reforms haven’t been able to significantly support the long-term financial needs of the real sector or facilitate the growth of the Nigerian economy The Augmented Dickey-Fuller (ADF) Test and The Phillip-Perron Test were used to test for stationarity of the variables, while the Johansen co-integration test was employed to indicate the existence of a long-run relationship among Gross Domestic Product—which acted as the Economic Growth proxy, Commercial Bank’s Capital, Commercial Bank’s Credit, and Number of Commercial Bank Branches which acted as the other variables. Secondary data was sourced from Commercial Bank Statistics, Central Bank Of Nigeria Bulletins, Nigeria Bureau Of Statistics, Statistical Bulletins for the period of 1998-2017. Conclusively, there was a positive and significant relationship betweenEconomic Growth and Banking Sector Reforms in the long run, but a negative relationship between Economic Growth and Financial Sector Reforms in the short-run. It was recommended that the government should ensure political and macroeconomic stability as the activities in all other sectors are affected by them, and that people are enlightened on the benefits of banking sector reforms so that they don’t take opposing actions against the goal of reforms.

Download or read book The Impact of Sectoral Bank Lending on Economic Growth in Nigeria written by Adeola Y. Oyebowale and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Power of Bank Credit on Economic Growth written by John Ugoani and published by . This book was released on 2013 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bank credit policies in Nigeria are very critical for some reasons. One bank credit is the oil on the wheel of economic growth. Two there is strong empirical evidence that the development of sound financial markets and institutions has significant relationships with long term economic growth. Very importantly again, recent research provides evidence that inappropriate and bad financial sector policies are potentially costly and dangerous in a developing economy as proved by financial sector distress in Nigeria, particularly in the 1990s, through 2011. The study designed to explore the power of bank credit on economic growth applied the survey research design. Data generated were analyzed through tables, frequencies, percentages and the X2 statistics. It was found that bank credit has significant relationship with economic growth and socio-infrastructural development. Five recommendations were made based on the result of the study.

Download or read book Development Bank Lending in Nigeria written by Sayre P. Schatz and published by . This book was released on 1964 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Impact of Bank Credit on the Real Sector written by I. Oluwafemi Oni and published by . This book was released on 2014 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper examines the impact of bank credit to output growth in the manufacturing and agricultural sub sectors of the economy over the period 1980-2010. Using the error correction modeling techniques, the results show that bank credit has significant impact on manufacturing output growth both in the short run and long run but not in the agricultural sub sector. Inflation and exchange rate depreciation have negative effects on manufacturing output growth in both short run and long run. To boost output growth in the real sector, more bank credit should be made available to the real sector especially the manufacturing sector. Also, inflation should be kept low while the value of the domestic currency should be strengthened.

Download or read book Determinants of Credit Flow from the Nigerian Banking System an Empirical Analysis written by 'Tunde Adeoye and published by . This book was released on 2003 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Economic Growth in Nigeria written by Charles Osondu Manasseh and published by . This book was released on 2014 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The growth of financial system, as the central hub of every economy is paramount for economic development. The reformation of the financial sector is the bedrock for building a formidable, transparent and efficient financial system that could supports the mobilisation of domestic and foreign savings for investment. Conversely, it deepens and broadens financial intermediation, and enforces strict regulations with prudential guide for increase in business activities. Thus, the aim of the study is to investigate the causal relationship between financial sector reforms and economic growth in Nigeria. The study also established the impact of financial sector reforms on economic growth to ascertain if financial sector reforms in Nigeria promote growth. To establish this, financial sector reforms is measured with the ratio of banking sector domestic credit, domestic credit to the private sector and Capital flow proxied with foreign direct investment while economic growth is captured with Per capita GDP. Using generalised linear regression method, with quarterly time series data that spans the periods 1981Q1 to 2010Q4, the following findings on granger causality test were noticed; (a) bidirectional relationship between banking sector domestic credit and per-capita GDP; (b) unidirectional causation running from foreign direct investment to per-capita GDP and; (c) unidirectional causation running from per-capita GDP to domestic credit to the private sector. However, from the findings, banking sector domestic credit and foreign direct investment are the major policy variables that can be adjusted for economic growth. Finally, the estimated regression results show that the explanatory variables accounted for approximately 63.45 percent variation in economic growth. Hence, financial sector reform promotes economic growth in Nigeria.

Download or read book The Impact of Financial Liberalisation on the Finance of Small and Medium Scale Enterprises in Nigeria written by Sylvanus I. Ikhide and published by . This book was released on 1998 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Regional Banking and Economic Development written by Herbert Onyekwere Orji and published by . This book was released on 1987 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Perspectives on Central Banking and Economic Development in Nigeria written by G. O. Nwankwo and published by . This book was released on 2001 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Credit Expansion in Emerging Markets written by Ms.Mercedes Garcia-Escribano and published by International Monetary Fund. This book was released on 2015-09-29 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the contribution of credit growth and the composition of credit portfolio (corporate, consumer, and housing credit) to economic growth in emerging market economies (EMs). Using cross-country panel regressions, we find significant impact of credit growth on real GDP growth, with the magnitude and transmission channel of the impact of credit on real activity depending on the specific type of credit. In particular, the results show that corporate credit shocks influence GDP growth mainly through investment, while consumer credit shocks are associated with private consumption. In addition, taking Brazil as a case study, we use a time series model to examine the role that the expansion and composition of credit played in driving real GDP growth in the past. The results of the case study are consistent with those found in the cross-country panel regressions.

Download or read book Financial Liberalization and Growth in Developing Economics written by Nigerian Society for Financial Research. Conference and published by . This book was released on 2004 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Public Policy on the Banking System in Nigeria written by Martin Brownbridge and published by . This book was released on 1996 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Credit Crunch written by Central Bank of Nigeria and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Nigeria is an entrepreneurial economy with an estimated thirty seven million Micro, Small, and Medium-sized Enterprises (MSME) in the country, and their contribution to economic growth and job creation is significant. There are also a large number of self-employed entrepreneurs who support themselves and their families by supplying goods and services to the economy. Many of these businesses have the potential to become bigger and more prosperous, but their growth is restricted for a variety of reasons. Access to finance has been singled out as a crucial prerequisite to the growth of these businesses. This report identified collateral as the missing link between the small-scale business sector and the financial institutions that could provide the necessary capital for them to grow. This means formal lending is virtually inaccessible for these small businesses and entrepreneurs, who instead rely on informal, unregulated, and unpredictable credit in order to expand their operations. To improve access to finance and promote inclusive economic growth, the Central Bank of Nigeria (CBN), in partnership with the International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, has established the National Collateral Registry and is supporting the development of a modern credit reporting system in Nigeria. This new financial infrastructure will allow for increased use of moveable and reputational collateral to make it possible for more MSMEs to access financing through the formal sector.

Download or read book Quantifying the Impact of Financial Development on Economic Development written by Jeremy Greenwood and published by DIANE Publishing. This book was released on 2010-10 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: How important is financial development for economic development? A costly state verification model of financial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as intermediation spreads and the firm-size distribution for the years 1974 and 2004. It is then used to study the international data, using cross-country interest-rate spreads and per-capita GDP. The analysis suggests that a country like Uganda could increase its output by 140 to 180 percent if it could adopt the world's best practice in the financial sector. Still, this amounts to only 34 to 40 percent of the gap between Uganda's potential and actual output. Charts and tables.