Determinants of Bank Lending in Nigeria

Q2 Economics, Econometrics and Finance

Global Journal of Emerging Market Economies Pub Date : 2020-09-01 DOI:10.1177/0974910120961573

A. Y. Oyebowale

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引用次数: 8

Abstract

The willingness of commercial banks to provide loans is determined by various factors. In this regard, this paper provides empirical evidence on determinants of bank lending in Nigeria. The parsimonious model of this study investigates the impact of growth in loan-to-deposit ratio, growth in inflation, growth in broad money, and growth in bank capital on growth in bank lending using annual data from 1961 to 2016. This study adopts the autoregressive distributed lag (ARDL) bounds testing approach and Granger causality tests to investigate the relationship and direction of causality among the variables, respectively. The Granger causality tests show that growth in broad money Granger-causes growth in bank lending, while there is no causality from other explanatory variables to bank lending in Nigeria. Also, this study shows that growth in bank lending Granger-causes growth in loan-to-deposit ratio and growth in inflation in Nigeria. Thus, this paper argues that commercial banks in Nigeria exhibit stern concern for their liquidity and capital adequacy positions while acting as financial intermediaries. Additionally, this paper argues that the Central Bank of Nigeria (CBN) possesses “paper-based” independence.

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尼日利亚银行贷款的决定因素

商业银行提供贷款的意愿是由多种因素决定的。在这方面，本文提供了尼日利亚银行贷款决定因素的实证证据。本研究的简约模型使用1961年至2016年的年度数据，考察了存贷比增长、通胀增长、广义货币增长和银行资本增长对银行贷款增长的影响。本研究分别采用自回归分布滞后(ARDL)界检验方法和格兰杰因果检验来考察变量之间的因果关系和方向。格兰杰因果检验表明，广义货币格兰杰增长导致银行贷款增长，而其他解释变量对尼日利亚银行贷款没有因果关系。此外，本研究表明，银行贷款格兰杰的增长导致尼日利亚存贷比的增长和通货膨胀的增长。因此，本文认为，尼日利亚的商业银行在充当金融中介机构的同时，对其流动性和资本充足率状况表现出严格的关注。此外，本文认为尼日利亚中央银行(CBN)具有“纸面上的”独立性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Global Journal of Emerging Market Economies Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)

CiteScore

2.70

自引率

0.00%

发文量

期刊介绍： Global Journal of Emerging Market Economies is a peer-reviewed journal. The aim of the journal is to provide an international platform for knowledge sharing, discussion and networking on the various aspects related to emerging market economies through publications of original research. It aims to make available basic reference material for policy-makers, business executives and researchers interested in issues of fundamental importance to the economic prospects and performance of emerging market economies. The topics for discussion are related to the following general categories: D. Microeconomics E. Macroeconomics and Monetary Economics F. International Economics G. Financial Economics H. Public Economics I. Health, Education, and Welfare J. Labor and Demographic Economics L. Industrial Organization O. Economic Development, Innovation, Technological Change, and Growth Q. Agricultural and Natural Resource Economics • Environmental and Ecological Economics R. Urban, Rural, Regional, Real Estate, and Transportation Economics Additionally, the journal would be most interested to publish topics related to Global Financial Crisis and the Impact on Emerging Market Economies Economic Development and Inclusive Growth Climate Change and Energy Infrastructure Development and Public Private Partnerships Capital Flows to and from Emerging Market Economies Regional Cooperation Trade and Investment and Development of National and Regional Financial Markets The Belt and Road Initiative.