IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 2 NO. 4 2016

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Economics of Wealth Creation: A Study of Some Selected Quoted Deposit Banks in Nigeria.

Awoseyila, Folorunso

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Abstract

This study is focused on the contribution of the banking sector to economic growth in Nigeria. Five banks were selected based on the availability of their annual reports. These banks were Zenith, Access, Diamond, Guaranty Trust Bank (GTB) and WEMA. The banks were coded B1, B2, B3, B4 and B5 to avoid direct linkage of these names to the findings. Data on the banks’ profit before taxation were collected from the annual reports and the gross domestic product (GDP), a proxy for economic growth, from the Central Bank of Nigeria (CBN) various issues of the Statistical Bulletin was collected from the profit before tax (PBT) of the banks from the annual reports between 2002 and 2015. Findings revealed that only two of the banks contributed significantly to economic development in Nigeria. Two of the banks contributed negatively to economic development while one of the banks was significantly contributing negatively to the economy. The findings of the study would have practical policy implementation especially in assisting policy makers and regulators of the financial institution in understanding the potential links between wealth creation and economic development in the banking sector in Nigeria.

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