Effect of Interest Rate on the Perfomance of Deposit Money Banks in Nigeria (2010-2020)

Student: Goodnews Ebere Johnson (Project, 2025)
Department of Banking and Finance
Osun State Polytechnic, Iree, Osun State

Abstract

This study is on the effect of interest rate on the performance of deposit money bank deposits in Nigeria from 2010-2020 Ordinarily, high interest rate should spur the desire for bank customers to want to deposit their fund in the bank vault. Likewise, low interest rate should naturally discourage depositors. But most oftentimes this is not the case, hence this study to examine how interest rates affects deposit money bank deposits in Nigeria. The study made use of secondary data sourced from the central bank statistical bulletin annual report. The model for the study has as its dependent variable, deposit money bank deposit (CBD); while its independent variables are money supply inflation exchange rate interest rate. Using the regression techniques; the study revealed that there is a positive relationship between the interest rates and the deposit money bank deposits suggesting that interest rates is responsible for customers deposits in deposit money banks in Nigeria From the hypothesis, tested there is a significant relationship between interest rate and performance of deposit money banks in Nigeria.

Keywords
effect interest perfomance deposit money banks nigeria 2010-2020
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