Management, Vol. 3, Issue 4, Oct  2020, Pages 29-42; DOI:

Deposit Money Banks Activities and Economic Development of Nigeria

Management, Vol. 3, Issue 4, Oct  2020, Pages 29-42.


Ulokoaga Daniel Ayegbeni 1*

1 Department of Finance, Faculty of Management Sciences, University of Benin, Benin City, Edo State, Nigeria

Received: 9 May 2020; Accepted: 25 May 2020; Published: 28 June 2020

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The study examines the impact of Deposit Money Bank (DMB) activities on economic development in Nigeria. The study used annual data from the period 1981 to 2018 sourced from the CBN statistical bulletin and World Bank Development Index Website. Preliminary test of descriptive statistic, unit root test and correlation analysis were employed. The analysis involved the estimation of the Ordinary Least Squares (OLS) and General Least Squares (GLS) estimation techniques to determine the dynamic pattern of response of economic development with respect to changes in DMB activities. Specifically, findings showed that only DMB branches have significant positive effect on economic development in Nigeria. Bank Deposits and Exchange rate have a non-significant positive effect on economic development in Nigeria while bank credit and interest rate have non-significant negative impact on economic development in Nigeria during the period under review.


Deposit Money Banks, Economic Development, Bank Credit, Banking Sector


© 2017 by the authors. Licensee International Technology and Science Press Limited. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


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