Effect of interest rate deregulation on bank deposits mobilisation in Nigeria

Effect of interest rate deregulation on bank deposits mobilisation in Nigeria

Author by Dr. Tunji Siyanbola

Journal/Publisher: International Journal Of Marketing And Technology

Volume/Edition: 2

Language: English

Pages: 194 - 203

Abstract

This study assessed, in empirical terms, the effect of interest rate deregulations on banks deposits mobilisation in Nigeria. It adopted the econometric tool of Ordinary Least Square (OLS) Regression method to analyse the relationship between interest rate and deposit mobilized over a period of 26 years (1985 to 2011). The study found a positive relationship between the independent and dependent variables, indicative of the fact that interest rate has a major influence on deposit mobilisation. The study therefore recommends that manufacturing companies should be favoured by government when deregulating the interest rate by way of stimulating productive sector of the economy, amongst others


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