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The Impact of Bank Consolidation on Lending to SMES in Nigeria
Authors: Chimaobi Valentine Okolo
Abstract:This paper seeks to assess the implications of bank consolidation on lending, which largely determine the survival and performance of small and medium scale enterprises and in turn the development of the Nigerian economy. Ordinary least square technique, correlation matrix test and Granger –causality test were employed to measure the extent to which lending to small and medium scale enterprises were influenced. The result showed that bank deposit (BD) impacted on lending to small and medium scale enterprises. Commercial and merchant bank lending rate had statistically insignificant effect on the dependent variable. There is a shift of focus by commercial banks from small and medium scale enterprises (small customers) to major investors (big customers). While micro finance banks work hard at providing funds to small and medium scale entrepreneurs, their capacity to meet the needs of these entrepreneurs is constrained. The capital and deposits of micro finance bank should be boosted in order to effectively support small and medium scale enterprises through loans.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1108961Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2327
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