BANK CONSOLIDATION AND LENDING CHANNEL OF MONETARY POLICY TRANSMISSION IN NIGERIA
BANK CONSOLIDATION AND LENDING CHANNEL OF MONETARY POLICY TRANSMISSION IN NIGERIA
Author(s): Oluwaseun Aanuoluwa Ayesola, Ayoola Joshua OlarewajuSubject(s): Public Finances
Published by: Universitatea SPIRU HARET - Faculty of Accounting and Financial Management
Summary/Abstract: This study examined the impact of bank consolidation exercise on bank lending channels as a monetary policy transmission mechanism. The study is based on Nigeria economy for the period 2005b to 2013 and the data used such as, loans and advances, real Gross Domestic Product, Inflation rate, and monetary policy indicator were obtained from CBN Statistical bulletin while data on capitalization, liquidity, total asset and bank consolidation, were obtained from financial reports of banks. The data was analyzed using Generalized Method of Moment (GMM) technique and the result shows that monetary policy had a significant negative relationship with bank loan supply. The result also that consolidation in the banking industry had a negative effect on monetary policy transmission through bank lending channel. The study concludes that consolidation in the banking sector had a negative effect on the effectiveness of bank lending channel in Nigeria.
Journal: Journal of Academic Research in Economics (JARE)
- Issue Year: 11/2019
- Issue No: 3
- Page Range: 656-674
- Page Count: 19
- Language: English
- Content File-PDF
