INFLUENCE OF INTEREST RATES DYNAMICS ON FINANCIAL DEEPENING IN NIGERIA

Authors

  • AZU, Benedict Department of Economics, University of Delta, Agbor, Delta State
  • AMAHI, Fidelis U Department of Accounting and Finance, University of Delta, Agbor, Delta State

Keywords:

interest rates, financial deepening and economic growth

Abstract

The main objective of the research is to investigate the impact of interest rate reform on Nigeria's financial deepening. As estimation techniques, Co integration, Autoregressive Distributed Lag (ARDL), and Ordinary Least Square (OLS) were used. Time series data from 1994 to 2021 are analyzed in this study. The results point to a long-term connection between interest rates and financial deepening. We also learn that the interest rate change has a positive and significant effect on Nigeria's financial development. The findings highlight the necessity for policymakers to put policies in place that promote economic growth, the liquidity reserve ratio, the domestic savings/GDP ratio, and reforms to ensure the efficiency and development of the financial sector

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Published

2023-07-11

Issue

Vol. 11 No. 1 (2023)

Section

Articles