BANK LOANS, LENDING RATES AND DEPOSIT MONEY BANKS PERFORMANCE

ABSTRACT

This study examines the impact of bank lending and lending rates on the performance of Nigerian depository banks over the period 1981-2020 (40 years). A fully modified conventional least squares method was used to analyze the data. The analysis shows that in Nigeria, bank loans (BLOAN) have a significant negative relationship with deposit bank performance, while bank deposits (BDEP) have a strong positive effect. on the performance of deposit banks. Total bank assets (BASS) also has a weak positive relationship with performance. Lending Rates (LENR) are negative and do not play a significant role in the performance of depository banks in Nigeria. , concluding that these are not lending rates or bank assets. Therefore, the study recommends, among other things, that regulators and supervisors pay attention to depository banks' deposits and ensure that they are properly managed to incentivize more savings. . To do. Management also needs to steadily increase current deposit balances, which can be achieved through more aggressive marketing efforts to attract more depositors to the bank.