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EFFECT OF DEPOSIT MONEY BANKS ON REAL ESTATE GROWTH IN NIGERIA

European Journal of Economic and Financial Research

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Title EFFECT OF DEPOSIT MONEY BANKS ON REAL ESTATE GROWTH IN NIGERIA
 
Creator Godwin Bassey, James
Ogar, Anthony
 
Subject deposit money banks, real estate growth, Nigeria
 
Description This study examined the effect of deposit money banks on real estate growth in Nigeria using bank credit to the real estate, interest rate, inflation rate and the contribution of the real estate to GDP as the study’s variables. The study adopted the ex-pose facto research design. Annual time series data were collected from the CBN statistical Bulletin using the desk survey method for the period 1985 to 2017. The data were analysed using the ordinary least square multiple regression statistical technique. Result from the analyses revealed that bank credit to the real estate subsector has a positive and significant effect on the real sector growth in Nigeria. Also, it was shown that interest rate had a positive but insignificant effect on real estate growth in Nigeria. Lastly, it was revealed that inflation has a positive but insignificant effect on real estate growth in Nigeria. Based on these findings, it was recommended that CBN and other regulatory authorities should formulate policies to encourage increased funding by banks to the real estate sector by prioritizing lending by deposit money banks to this subsector. Also, interest rate on real estate loans should be set lower than the conventional interest rates to boost the efficiency of the sector and facilitate it contribution to GDP and growth and Lastly monetary authority should target inflation rate at single digit and ensure that inflation does not increase beyond that level to boost real sector growth. JEL: G20; G21; L85  Article visualizations:
 
Publisher European Journal of Economic and Financial Research
 
Contributor
 
Date 2019-12-16
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion

 
Format application/pdf
 
Identifier https://oapub.org/soc/index.php/EJEFR/article/view/695
 
Source European Journal of Economic and Financial Research; Volume 3, Issue 5, 2019
2501 - 3430
2501 - 9430
 
Language eng
 
Relation https://oapub.org/soc/index.php/EJEFR/article/view/695/1277
 
Rights Copyright (c) 2019 James Godwin Bassey, Anthony Ogar
http://creativecommons.org/licenses/by/4.0