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EFFECT OF BANKING SECTOR PERFORMANCE IN ECONOMIC GROWTH: CASE STUDY OF NIGERIA
ABSTRACT
This study aims to explore the impact of banking sector’s performance on economic growth of Nigeria. Using a sample of ten commercial banks for the period from 2008 to 2012, we found a positive and significant association between measures of bank performance and economic growth. Results of linear regression show that measures of bank performance namely deposits, advances, profitability, interest earnings and investment have positive relationship with economic growth as measured by GDP. It is suggested to improve policy reforms in banking sector for economic development of Nigeria KEYWORDS: Banking Sector, Economic growth, Investment.