scholarly journals IMPACT OF INTEREST RATE DEREGULATION ON INVESTMENT GROWTH IN NIGERIA

2020 ◽  
Vol 10 (2) ◽  
pp. 170-180
Author(s):  
Osuji Obinna
Keyword(s):  
Interest Rate ◽  
Interest Rate Deregulation ◽  
Investment Growth

scholarly journals Effects of Interest Rate Deregulation on the Growth of Nigerian Agricultural Sector

2019 ◽  
Vol 1 (1) ◽  
pp. 107-112
Author(s):  
Opaluwa D. ◽  
◽  
Ocheni B. A. ◽  
Dauda S. N. ◽  
Adewale G. A.
Keyword(s):  
Interest Rate ◽  
Agricultural Sector ◽  
Interest Rate Deregulation

Indian Banking Sector Reforms: Review and Prospects

2005 ◽  
Vol 8 (2) ◽  
pp. 167-189 ◽  
Author(s):  
Tae Hwan Yoo
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Foreign Exchange ◽  
Banking Sector ◽  
Banking Industry ◽  
Indian Government ◽  
Reform Policy ◽  
Public Sector Banks ◽  
Positive Effects ◽  
Interest Rate Deregulation

Development in the financial sector, in particular, the banking sector, plays a key role in stimulating and stabilizing economic growth. Since the foreign exchange crisis in 1991, India has undertaken banking sector reforms. This paper focuses on the following two issues. First, I provide an overview of development in the banking sector over the years, especially after the implementation of the reform policy programs. In order to show the evolution of the Indian banking sector, I examine the reserve ratios reduction, interest rate deregulation, and ratios of non-performing assets. Second, this paper investigates the performance of banking groups by comparing the degree of profitability, and the soundness and efficiency of banks in India. In conclusion, while reform policies have had positive effects on the performance of banks, especially Public Sector Banks in India, the Indian government has to take further steps to deregulate and liberalize the banking industry.

scholarly journals Interest Rate Deregulation and Performance of Deposit Money Banks: Time Series Evidence from Nigeria

2021 ◽  
Vol 04 (08) ◽  
Author(s):  
Awa Michael Uduma ◽  
Keyword(s):  
Interest Rate ◽  
Banking System ◽  
Order Zero ◽  
Deposit Rate ◽  
Explanatory Variables ◽  
Long Run ◽  
Integration Test ◽  
Lending Rate ◽  
Interest Rate Deregulation ◽  
And Performance

This work investigated the relationship between interest rate deregulation and performance of Nigerian deposit money banks for the period 1996-2018. Interest rate deregulation was disaggregated into prime lending rate, maximum lending rate, 3-months deposit rate and over 12-months deposit rate while return on assets (ROA) was used as a proxy for deposit money banks’ performance. Data on the above variables were sourced from the Central Bank of Nigeria Statistical Bulletin (2018 edition) and the World Bank data base. The data were tested for stationarity using the Dickey-Fuller (D-F) test, for long-run relationship using Bound’s co-integration test, and for reliability of ARDL results using serial correlation, heteroscedasticity and normality tests. The results of the tests revealed that all the variables were integrated of order zero or one, and that a long-run relationship exists between the variables. Consequently, ARDL model for parameter estimation process revealed that only prime lending rate was positively related to ROA of banks while none of the explanatory variables was statistically significant. The researcher then submitted that there is no significant relationship between interest rate deregulation and the performance of Nigerian deposit money banks for the period considered. Hence, deposit money banks should strive to mobilize adequate savings from surplus spenders by offering them deposit rates that are capable of inducing savers to increase their savings and boost the availability of loanable funds. Also, there is urgent need to restructure the Nigerian financial system whereby policies by the monetary authorities will achieve pre-determined goals. In essence, to make interest rate policies meaningful, there is need to curtail financial transactions that escape the banking system.

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