RELATIONSHIP BETWEEN BANK FINANCIAL ACTIVITIES AND THE NIGERIAN ECONOMY

ABSTRACT

This study explores the impact of the financial activities of banks on the value of economic development. The study used data collected from CBN’s Statistical Bulletin and National Bureau of Statistics for the period of 1995 to 2020. The method of data analysis is ordinary least square (OLS). The result of the empirical investigation revealed that the activities of the banking sector has not been a significant driver of the Nigerian Economy It also revealed that the variables Monetary Policy (MOPR), Exchange Rate (EXCR), and Interest Rate (INTR) are not significant enough in determining the direction of the Nigerian Economy. The study conclude that bank’s financial activities increased the performance or value creation for the Nigerian economy. The study recommend policymakers, government and major stakeholders in the banking industry should create a business enabling environment for bank’s activities to thrive in order to improve the lot of the banking industry and make Nigerian banks competitive in the global are.