Impact of Financial Intermediaries on Nigerian Economic Growth

Manasseh, Charles O.; Okoh, Johnson Ifeanyi; Abada, Felicia C.; Ogbuabor, Jonathan E.; Alio, Felix C.; Lawal, Adedoyin Isola; Nwakoby, Ifeoma C.; Asogwa, Onyinye J.

doi:10.5430/ijfr.v12n1p348

Cited by 3 publications

(4 citation statements)

References 7 publications

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“…Commercial banks play the critical role of financial intermediation whereby they facilitate flow of funds between persons with financial surplus, mainly savers and those with financial deficit mainly borrowers and investors (Manasseh et al, 2021). They aggregate funds on behalf of the borrowers and investors while also facilitating settlement of business transactions.…”

Section: Issn: 2616-4965 11 Background Of the Studymentioning

confidence: 99%

Leadership Style and Financial Performance of Commercial Banks in Kenya

Mwangi

2022

JOFA

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This study aimed at establishing the influence of leadership style on the financial performance of commercial banks operating in Kenya. The study adopted a positivist philosophy, correlational and cross-sectional research deigns and a target population comprising management staff working in commercial banks. 385 respondents were selected from 10,395 management staff. Primary data was collected using structured questionnaires with data being analyzed using both descriptive and inferential statistics. Parametric test statistics was adopted to establish the significance influence of variable effect at 95% level of significance as well as to test the study hypothesis. The regression of coefficients indicates that transformational leadership has a positive and significant partial effect on financial performance of commercial banks in Kenya with Democratic Leadership having a positive and significant partial effect on financial performance of commercial banks in Kenya. The study also shows that autocratic leadership has a positive and significant partial effect on financial performance of commercial banks in Kenya while Laissez-Faire leadership has a negative and significant partial effect on financial performance of commercial banks in Kenya. The study recommends that that top managers of the commercial banks need to take up effective transformational and democratic leadership style in their management programs. This can be achieved through staff training and development using both in-house and open training programs as well as continuing development programs. Banks should join hands with training and educational institutions in regard to development of leadership modules under their training programs.

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Section: Issn: 2616-4965 11 Background Of the Studymentioning

confidence: 99%

Leadership Style and Financial Performance of Commercial Banks in Kenya

Mwangi

2022

JOFA

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“…It means that the Indonesian sharia stock index trading value is influenced by the Indonesian sharia stock index trade value itself a month ago, and is influenced by the market capitalization on the stock exchange a month ago, where each increase of 1 trillion Indonesian sharia stock index trading values this month is due to the tendency of the increase in market capitalization last month by 0.35 trillion. The negative Indonesian sharia stock index value is suspected because investors are more dominant in seeing the magnitude of the market capitalization value instead of seeing the specific trading value of sharia stocks when trading on the Islamic capital market (Manasseh et al, 2018).…”

Section: The Estimation Of Vector Error Correction Modelmentioning

confidence: 99%

“…From the two impulse response tests above it can be said that the shock given by the market capitalization gives much greater effect than Indonesian sharia stock index. This means that if there is a change in the market capitalization value on the Indonesia stock exchange then the sharia stock index trading value will respond strongly in the second and third month before then heading to a new stable condition (Manasseh et al, 2018).…”

Section: Impulse Response Function Testmentioning

confidence: 99%

The Causality between Indonesian Sharia Stock Index and Market Capitalization: Evidence from Indonesia

Widyanata

Bashir

2020

jesp

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This study investigates the relationship between the sharia stock index and market capitalization in Indonesia for the period 2011-2019. This study uses secondary data, it is monthly time series data with 97 months observation period from May 2011 until March 2019. The analysis technique of this study is the granger causality test that is complemented by the impulse response and variance decomposition test. the findings of the study indicated that there was only a one-way causality relationship between the Indonesian sharia stock index variable and market capitalization, which only the changes of market capitalization in the past affected the changes of the sharia stock trading value in the present but not vice versa. The effect of market capitalization changes will be responded strongly by sharia stock in the second and third month, and then return to a new stable condition. Furthermore, the changes in the value of market capitalization provide a sizable and continuous contribution to the changes of Indonesia sharia stock trading value.

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“…The variables used are credit to private sector, broad money supply, interest rate and lending rate, RDGP. Using Vector error correction model, the study showed that there is a significant relationship between financial intermediation indicators and economic growth.2.12 LITERATURE GAPSeveral studies (such asJohn and Nwekemezie, 2019; Iwedi, Okey-Nwala, Kenn- Ndubuisi & Adamgbo, 2016; Ekong & Okon, 2016;Usman, Alimi and Onayemi, 2018; Manasseh, Okoh, Abada, Ogbuabor, Alio, Lawal, Nwakoby, &Asogwa, 2021 andAye, 2015) were carried out on financial intermediation variables using variables such as broad money velocity and credit to private sector. The focus has been almost entirely on bank based financial intermediation measures, while ignoring the possible impact of nonbanking influence such as capital market development on Nigerian economy.…”

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confidence: 99%

Financial Intermediation and Economic Growth in Nigeria

Olufemi,

Muritala,

Yusuf

et al. 2024

J. of Law and Sust. Develop.

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Objective: This study examined the impact of financial intermediation on economic growth in Nigeria. The study employed secondary data obtained from the Central Bank of Nigeria statistical bulletin from year 1987 to 2020. Method: The independent variable – Financial intermediation was proxied by credit to private sector, broad money supply, lending rate, market capitalization and total value of shares traded while the dependent variable – Economic growth was proxied by gross domestic product and per capital income. Autoregressive Distributed Lag (ARDL)/Bound testing to co-integration was used to establish the short run and long-run dynamic impact of financial intermediary on economic growth in Nigeria. Results: The study revealed a high speed of adjustment in the short run (Cointeq(-1) = (-0.9995; -0.981099) for the two models respectively. Similarly, for the GDP model, the study revealed that in the long run, credit to private sector (β1 = 0.0121); market capitalization (β4 = 0.05423) and total volume of shares traded (β5 = 1.62669) all established positively significant impact on economic growth in Nigeria at 5% significance level except broad money supply (β2 = - 0.00511) and lending rates (β3 = - 0.14194) which established negatively significant impact on economic growth in Nigeria at 5% significance level. However, for the PCI model, the study revealed that in the long run, credit to private sector (β1 = 0.002216); market capitalization (β4 = 0.095095) and total volume of shares traded (β5 = 1.915620) all established positively significant impact on economic growth in Nigeria at 5% significance level except broad money supply (β2 = -0.008476) and lending rates (β3 = -0.313843) which established negatively significant impact on economic growth in Nigeria at 5% significance level. Conclusion: The study therefore, recommends that management of banks should be encouraged to pursue policies that will deepen the efficient allocation of financial services for economic growth in Nigeria.

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Impact of Financial Intermediaries on Nigerian Economic Growth

Cited by 3 publications

References 7 publications

Leadership Style and Financial Performance of Commercial Banks in Kenya

Leadership Style and Financial Performance of Commercial Banks in Kenya

The Causality between Indonesian Sharia Stock Index and Market Capitalization: Evidence from Indonesia

Financial Intermediation and Economic Growth in Nigeria

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