The Contribution of Listed Banks to Economic Development in Nigeria
The Contribution of Listed Banks to Economic Development in Nigeria

Summary/Abstract: Deposit Money Banks (DMBs) exert a vital role in funding economic projects in developing countries. Generally, DMBs assume an intermediary role between surplus and the deficit units. In the light of this, this research paper appraised DMBs as panacea to economic development in Nigeria using data drawn from the financial statements of eight banks from 2008 to 2015. The study took Gross Domestic Product as the dependent variable and used Employee Wages, Tax paid to government, Interest paid to Creditors, Dividends paid to shareholders and Retained Earnings as independent variables coupled with the use of correlation analysis and panel data regression technique. The paper revealed that the independent variables exert a positive effect on development of the economy, however, both wages paid to banks’ employees and retain earnings exert significant positive effects on economic development. Hence, the paper recommends that DMBs should at least maintain the current wage rate and corporate retention policy in order to continue to contribute to economic development in Nigeria

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