Financial Inclusion and Financial Performance of Listed Deposit Money Banks in Nigeria

Godwin Emmanuel OYEDOKUN (), Adewale Moses ADEYEMI () and Moyosore Akingbade ADEWUMI ()
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Godwin Emmanuel OYEDOKUN: Department of Management and Accounting, Faculty of Management and Social Science, Postal: Lead City University, Ibadan, Nigeria, https://www.afarng.org/Volume3Issue1June2023.php
Adewale Moses ADEYEMI: Department of Management and Accounting, Faculty of Management and Social Science, Postal: Lead City University, Ibadan, Nigeria, https://www.afarng.org/Volume3Issue1June2023.php
Moyosore Akingbade ADEWUMI: Department of Management and Accounting, Faculty of Management and Social Science, Postal: Lead City University, Ibadan, Nigeria,, https://www.afarng.org/Volume3Issue1June2023.php

Multidisciplinary Journal of Social Sciences, 2023, vol. 3, issue 1, 135-151

Abstract: This study investigated the relationship between financial inclusion and financial performance of deposit money banks in Nigeria. The study examined the impact of rural financing on the financial performance of Deposit Money Banks (DMBs) in Nigeria; investigated the influence of pricing of banking services on the financial performance of Deposit Money Banks in Nigeria; assessed how Small and Medium-sized Enterprises' (SMEs) financing affects the financial performance (FP) of Deposit Money Banks in Nigeria. The study employed ex-post facto and correlation research design with secondary data obtained from the Central Bank of Nigeria 2020 statistical bulletin and financial institutions of deposit money banks. The results indicated a positive and significant relationship between loans to customers, deposits by customers, bank branches, mobile banking, and agency banking on return on assets of deposit money banks. The study concluded that financial inclusion positively influences the level of financial performance of deposit money banks. On the basis of the conclusion, the paper recommended amongst others that the Central Bank of Nigeria (CBN) should redefine the loan accessibility supply as a tool for monetary policy by establishing an equilibrium level. This would allow the bank to make more funds available to deposit money banks so that they could improve their performance and increase the amount of loans they are issued. In addition, the study also recommends that the interest rate has a negative effect on the performance of deposit money banks, there is an urgent need for the government to impose restrictions on the cross-border flow of capital and also to make use of the relevant macroeconomic management tools to control loan accessibility in times of crisis in order to mitigate the effects of interest rate on the profitability of deposit money banks. This is because there is an urgent need for the government to do so because the interest rate has a negative effect on the financial performance of deposit money banks in the country

Keywords: Agency banking; Deposit money bank; Financial; Mobile banking; Return on assets (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ris:amjoss:0007

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Multidisciplinary Journal of Social Sciences is currently edited by Muhammad Akaro Mainoma, Godwin Emmanuel Oyedokun, Tankiso Moloi, Suleiman A. S. Aruwa and Aderemi Kabiru Adeyemo

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