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| The Determinants of Lending Behavior of Commercial Banks in Nigeria |
Lawal Faith Chidinma and Dr. Alexander Onyebuchi Ude
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Abstract:
The study assessed the determinants of lending behavior of the commercial bank in Nigeria. The main objective of this study is to determine the determinants of lending behavior of Commercial Banks in Nigeria for the period 1990 to 2019. The study made use 0f secondary data which was collected from the annual report of CBN and NDIC Statistical Bulletin. Based on the findings, the study recommends that when there is increment in volume of deposits it affects the proportion of loans and advances given to customers in Nigerian banks. the population of the study consist of 20 banks with 1000, personnel, while the sample for the study was 14 banks with 200 personnels. The instruments used for the study was a well developed and validated questionnaire, the research hypotheses was formulated to direct the study and regression least square method was used to test the hypotheses generated for the study. The out come of the study revealed that bank size is significant to the model estimate as well has positively impacted on lending behaviors of commercial banks in Nigeria . The study further revealed that the volume of deposits significantly influenced the proportion of loans and advances gives to customers in the commercial banks in Nigeria in light of finding of this study ,it was recommended that commercial banks must strive in harnessing resources from unbanked areas so as to carry out their intermediation activates effectively and finally recommends that accumulation of deposited Is the key for their survival because a strong and resilient financial system is necessary and paramount which will allow them competing internationally.
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