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The Contribution Of Commercial Bank To The Economic Growth In Nigeria (1980 –2004)
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1.4 HYPOTHESIS OF THE STUDY
In, the course of this research, the following hypothesis are going to be put forward and scientifically tested.
HO: b1 = O There is not significant relationship between commercial
banks’ loans and advances and Gross Domestic product in Nigeria
H1: b1 = O There is a significant relationship between commercial
banks’ loans and advances and Gross Domestic product in Nigeria.
1.5 SIGNIFICANCE OF THE STUDY
Contributions
of commercial banks towards economic growth especially in developing
nations are very essential. This study helps in better understanding of
the positive impact of commercial banks especially inn Nigeria. It
treats how commercial banks in Nigeria have made its contribution to the
attainment of economic growth.
This analysis will help the
policy makers to find a better way of regulating the activities of
commercial banks in particular and financial institutions as a whole.
This study hopes to stimulate, further investigation on how the
contribution of commercial banks to economic growth could be increased.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
The
study is directed to cover commercial banks’ loans and advances from
then period 1980 – 2004. The study reflects to a large extent what is
obtainable in our commercial banks and data collected and used are
mainly secondary data.
Due to incomplete data for the year 2005, the
research work covered the period of 1980 – 2004, but effort where made
to ensure that the study was carried out to meet the current demand and
comprehensiveness as adequately as possible.
1.7 DEFINITIONS OF TERMS
Economic Growth: It means the percentage annual change in the national
income of a country or a group of countries. It can be defined as
increase in real gross national product over a time or if country’s
gross national product has become larger than before economic growth is
desirable since a growing economy means that there will be more goods
and services for the people to consume. The rate of the gross national
product must be higher than the rate of growth of the population before
we can say that growth has had a positive impact on the welfare of the
citizens (kuznet 1973). Economic growth is an anchor in which other
aspects of economic development depend on.
Economic Development: To
asses the changes in national welfare we use the concept of development
rather than growth. Economic development is a process of improvement in
the general welfare of the society. It is usually manifested in
desirable changes in the various aspects of the life of the society.
Economic development includes the following:-
a) A reduction in the level of unemployment.
b) A reduction in the extent of personal and regional inequalities.
c) A reduction in the level of absolute poverty.
d) A rise in the real output of goods and services.
e) Improvements in the level of social and political consciousness of people.
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ABSRACT - [ Total Page(s): 1 ]The Operation of Commercial Banks in Nigeria started lately in 19th century and since then their contribution to the economic growth cannot be over emphasized. There is strong acceptance of the proposition that financial institutions and particularly the commercial banks contribute significantly to economic growth. For any country to pursue economic growth, therefore financial resources cannot be avoided. These financial resources are gotten mainly from commercial banks. This essence of commerci ... Continue reading---
