Bank lending is an important monetary policy transmission channel with significant impact on economic growth in Nigeria. The research was conducted to test the hypothesis that given the Central Bank of Nigeria (CBN) / government financial intervention, there is a significant increase in the lending behavior of Nigerian bank during and post 2008 financial crisis. Total loan ratio is the proxy for bank lending behavior while the dependent variables are bank specific characteristics like total assets, core deposit ratio and macroeconomic variables like the 91-day Treasury bill rate and inflation rate.
Using the fixed effects regression technique, it was observed that compared to the pre-crisis period, total loan ratio was higher during and post financial crisis, net of other variables. The results support the hypothesis and it suggests that due to the CBN / government financial intervention, Nigerian banks increased lending significantly following the 2008 financial crisis and they acted in a counter-cyclical manner to stimulate the Nigerian economy. Another important finding is the existence of a direct / positive relationship between inflation rate and private sector bank credit in Nigeria. Hence, the CBN can cut back on inflationary pressure through moral suasion for banks to curtail lending to non-essential and unproductive sectors of the economy.
","abstract_html":"<p>Bank lending is an important monetary policy transmission channel with significant impact on economic growth in Nigeria. The research was conducted to test the hypothesis that given the Central Bank of Nigeria (CBN) / government financial intervention, there is a significant increase in the lending behavior of Nigerian bank during and post 2008 financial crisis. Total loan ratio is the proxy for bank lending behavior while the dependent variables are bank specific characteristics like total assets, core deposit ratio and macroeconomic variables like the 91-day Treasury bill rate and inflation rate.</p> <p>Using the fixed effects regression technique, it was observed that compared to the pre-crisis period, total loan ratio was higher during and post financial crisis, net of other variables. The results support the hypothesis and it suggests that due to the CBN / government financial intervention, Nigerian banks increased lending significantly following the 2008 financial crisis and they acted in a counter-cyclical manner to stimulate the Nigerian economy. Another important finding is the existence of a direct / positive relationship between inflation rate and private sector bank credit in Nigeria. Hence, the CBN can cut back on inflationary pressure through moral suasion for banks to curtail lending to non-essential and unproductive sectors of the economy.</p>","abstract_has_math":false,"creators":["Oyakojo, Michael A"],"institution":null,"degree_name":"M.A.","degree_level":"Masters Thesis","degree_discipline":null,"degree_department":null,"school":null,"contributors":["Juan C. Lopez, Ph.D.","Maclyn Clouse, Ph.D.","Peter Ho, Ph.D.","Robert Urquhart, Ph.D."],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2019,"date_issued":"2019-01-01T08:00:00Z","date_published":"2019-01-01T08:00:00Z","updated_at":"2026-07-24T02:02:11Z","subjects":["Nigerian economics","Bank lending in Nigeria","Economic stimulus","Economic History","Economics","Growth and Development"],"languages":["en"],"rights":["Copyright is held by the author. User is responsible for all copyright compliance.
"],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":"https://digitalcommons.du.edu/etd/1679","outbound_label":"Repository record","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Juan C. Lopez, Ph.D.","Maclyn Clouse, Ph.D.","Peter Ho, Ph.D.","Robert Urquhart, Ph.D."]},{"key":"dc:creator","label":"Author","values":["Oyakojo, Michael A"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date.available","label":"Dc Date Available","values":["2023-10-04T07:00:00Z"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Masters Thesis"]},{"key":"thesis:degree_name","label":"Degree Name","values":["M.A."]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Nigerian economics","Bank lending in Nigeria","Economic stimulus","Economic History","Economics","Growth and Development"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["en"]},{"key":"dc:rights","label":"Dc Rights","values":["Copyright is held by the author. User is responsible for all copyright compliance.
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Using the fixed effects regression technique, it was observed that compared to the pre-crisis period, total loan ratio was higher during and post financial crisis, net of other variables. The results support the hypothesis and it suggests that due to the CBN / government financial intervention, Nigerian banks increased lending significantly following the 2008 financial crisis and they acted in a counter-cyclical manner to stimulate the Nigerian economy. Another important finding is the existence of a direct / positive relationship between inflation rate and private sector bank credit in Nigeria. Hence, the CBN can cut back on inflationary pressure through moral suasion for banks to curtail lending to non-essential and unproductive sectors of the economy.
"]},{"key":"dc:format","label":"Dc Format","values":["application/pdf"]},{"key":"dc:title","label":"Title","values":["Financial Crisis and Bank Lending Behavior in Nigeria"]}]}],"canonical_facts":{"dc:contributor":["Juan C. Lopez, Ph.D.","Maclyn Clouse, Ph.D.","Peter Ho, Ph.D.","Robert Urquhart, Ph.D."],"dc:creator":["Oyakojo, Michael A"],"dc:date.available":["2023-10-04T07:00:00Z"],"dc:description.abstract":["Bank lending is an important monetary policy transmission channel with significant impact on economic growth in Nigeria. The research was conducted to test the hypothesis that given the Central Bank of Nigeria (CBN) / government financial intervention, there is a significant increase in the lending behavior of Nigerian bank during and post 2008 financial crisis. Total loan ratio is the proxy for bank lending behavior while the dependent variables are bank specific characteristics like total assets, core deposit ratio and macroeconomic variables like the 91-day Treasury bill rate and inflation rate.
Using the fixed effects regression technique, it was observed that compared to the pre-crisis period, total loan ratio was higher during and post financial crisis, net of other variables. The results support the hypothesis and it suggests that due to the CBN / government financial intervention, Nigerian banks increased lending significantly following the 2008 financial crisis and they acted in a counter-cyclical manner to stimulate the Nigerian economy. Another important finding is the existence of a direct / positive relationship between inflation rate and private sector bank credit in Nigeria. Hence, the CBN can cut back on inflationary pressure through moral suasion for banks to curtail lending to non-essential and unproductive sectors of the economy.
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"],"dc:subject":["Nigerian economics","Bank lending in Nigeria","Economic stimulus","Economic History","Economics","Growth and Development"],"dc:title":["Financial Crisis and Bank Lending Behavior in Nigeria"],"thesis:degree_level":["Masters Thesis"],"thesis:degree_name":["M.A."]},"updated_at":"2026-07-24T02:02:11Z"}