Impact of Micro Finance Banks on Developing Economies–Evidence from Nigeria

Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 04

Abstract

This research concentrated on impact of micro finance banks on developing economies –evidence from Nigeria. The recent emphasis on micro, small and medium enterprises, and the licensing of microfinance bank in Nigeria viz-a-vis the dwindling economy of developing countries prompted this study. The data for the study was mined from the Central Bank of Nigeria’s statistical bulletin from 1992 to 2020. The E-view tool of analysis, and the Autoregressive Distributed Lag model were used. The research answered a question of whether microfinance banks contribute to economic growth or not. The unit root test showed that all parameters were stationary at first difference. Consequently, it was established that generally, there was a long run relationship between microfinance banks and economic growth in Nigeria while specifically, loans and deposits of microfinance banks showed significant and positive coefficients. Similarly, a causality test indicates that there exists a unidirectional causality between microfinance bank loans and economic growth, and microfinance bank deposits and economic growth. The researcher among other recommendations opined that Central Bank should be more objective in monitoring microfinance banks to avoid failure in that sub-sector which is likely the cradle of economic growth in the developing countries.

Authors and Affiliations

Dr. Ogbonna Udochukwu Godfrey

Keywords

Related Articles

Honorary Teacher Phenomenology: The Role of Knowledge Management and Transformational Leadership

This research is a development of the role of knowledge management, transformational leadership and Employee Engagement on the performance of Honorary Teachers from elementary to high school levels in the city of Makassa...

Reward Packages and Employee Performance of Commercial Banks in Delta State, Nigeria

The study assessed reward packages and employee performance of commercial banks in Delta State, Nigeria and determined the effect of recognition on employee performance; the effects of bonuses on employee performance in...

The Impact of Floods on Fish Cultivation Business in Floating Net Cages in Sungai Alang Village, Karang Intan District, Banjar Regency, South Kalimantan

The flood that hit Sungai Alang Village resulted in many floating net cages being lost in the flood, so many farmers lost their cages and caused losses for fish farmers. The aims of the study were to analyze: 1. The econ...

The Dynamics of Inflation Rates in a Consumer Driven Economy

The research was motivated by the conviction that inflation entails sizeable economic and social cost, and that for achieving a sustainable economic growth, management of inflation is a prerequisites. Co-integration and...

Traditional Financing Methods and Solidarity Finance: Perceptions of SMEs in the Fisheries Sector in the Region of Laayoune Sakia Elhamra

The financing decision is one of the most important financial decisions of a company. This decision involves various financing methods among which companies in general and small and medium-sized enterprises (SMEs) in par...

Download PDF file
  • EP ID EP707190
  • DOI 10.47191/jefms/v5-i4-23
  • Views 97
  • Downloads 0

How To Cite

Dr. Ogbonna Udochukwu Godfrey (2022). Impact of Micro Finance Banks on Developing Economies–Evidence from Nigeria. Journal of Economics, Finance and Management Studies, 5(04), -. https://europub.co.uk/articles/-A-707190