Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth

Anthony Orji

International Journal of Economics and Financial Issues, 2012, vol. 2, issue 3, 357-372

Abstract: This study investigated the determinants of bank savings in Nigeria as well as examined the impact of bank savings and bank credits on Nigeria's economic growth from 1970- 2006. We adopted two impact models; Distributed Lag-Error Correction Model (DL-ECM) and Distributed Model. The empirical results showed a positive influence of values of GDP per capita (PCY), Financial Deepening (FSD), Interest Rate Spread (IRS) and negative influence of Real Interest Rate (RIR) and Inflation Rate (INFR) on the size of private domestic savings. Also a positive relationship exists between the lagged values of total private savings, private sector credit, public sector credit, interest rate spread, exchange rates and economic growth. We therefore recommend, among others, that government's effort should be geared towards improving per capita income by reducing the unemployment rate in the country in a bid to accelerate growth through enhanced savings.

Keywords: Bank; Saving; Credit; Financial Sector; Economic Growth (search for similar items in EconPapers)
JEL-codes: E51 G21 G24 O16 O4 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2012-03-13

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