Tag Archives: Financial Intermediation

Determinants of Financial Intermediation and Its Implications on Economic Growth in Nigeria (Published)

The main objective of this study is to investigate the effect of financial intermediation on economic growth in Nigeria. The study made use of ordinary least square regression analysis. The study shows that interest rate margin has significantly impacted on economic development in Nigeria, that credit to private sector has significantly impacted positive on the development of Nigerian economy and that the level of lending rate over the years has impacted negatively on economic growth in Nigeria. The policy implication is that improper management of financial intermediation will help the economy to develop. This means that there is significant and positive effect of financial intermediation on economic growth in Nigeria. We therefore recommend that Nigerian government should ensure that a component analysis of the real sector of the Nigerian economy be carried out with a view to having a better understanding of the inverse relationship between the loans to the private sector and the performance of Nigerian economy through financial intermediation.

Keywords: Credit to Private Sector, Financial Intermediation, Interest Rate Spread, Regression, economic growth

An Evaluation of Technical Efficiency Of Commercial Banks In Nigeria (A Dea Approach) (Review Completed - Accepted)

This study evaluated technical efficiency of the Nigerian commercial Bank between the years 2002 to 2011. Ten Nigerian Banks were randomly selected out of 15 banks quoted in Nigeria. Published financial statements of the banks were sourced from which data for our variables were ascertained for 10 years. For this intention, the Data Envelopment Analysis (DEA) model was used with three input variables, which are; (deposits, operating expenses, and assets.) and four output variable; which are (loan and advances, investment, Interest income, and non-interest income). This study adopted the intermediation approach in selecting the inputs and outputs above.

The results of the analysis showed that, some banks were found perfectly technical efficient with efficiency scores of 1.000 meaning (100%) efficiency, whereas those that were below 1.000 were less fully efficient. The mean technical efficiency, for the period examined stood at 0.938 (93.8%). This mean result meant that the Nigerian banking sector generally needs sound managerial attention. It is recommended therefore that the sound macroeconomic, sectorial and structural policies are applied to improve internal balance, ensure external sector performance and stimulate the productivity base and industrial sector of the Nigerian economy

 

Keywords: Data Envelopment Analysis, Decision-Making Units, Financial Intermediation, Technical Efficiency