IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v4y2014i8p1123-1130id1240.html
   My bibliography  Save this article

Financing Capital Investments in Nigeria: The Role of the Banking Industry

Author

Listed:
  • Jude A Aruomoaghe
  • Ekundayo Olugbenga

Abstract

A developing nation like Nigeria needs huge capital outlay to finance the needed infrastructures and capital investments necessary to drive the economy. This study lays much emphasis on whether the banking industry is really financing capital investment thereby contributing immensely to the development of the economy. It also looks at the contribution of financial institutions in promoting the development of the stock market thereby mobilizing fund that will enhance manufacturing of goods. Data were collected from the CBN statistical bulletin spanning a period of 32 years (1981 – 2012). The data collected were analysed with regression using e-view software. It was discovered that the banks have contributed much in financing capital investments and stock market development in Nigeria. It was recommended that financial institutions should be encouraged to mobilize more deposit for lending that will aid capital investment. While the Central Bank on the other hand should reduce its minimum rediscounting rate.

Suggested Citation

  • Jude A Aruomoaghe & Ekundayo Olugbenga, 2014. "Financing Capital Investments in Nigeria: The Role of the Banking Industry," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(8), pages 1123-1130.
    • Handle: RePEc:asi:aeafrj:v:4:y:2014:i:8:p:1123-1130:id:1240
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1240/1773
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Antonio J. Dayag & Fernando Trinidad, 2019. "What Drives Stock Market Performance of Banks / Universal Banks? A Critical Examination of Literature," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 8(3), pages 51-57, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:4:y:2014:i:8:p:1123-1130:id:1240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.