The paper empirically analyzed financial liberalization and Bank performance in Ijebu-north area, Ogun State, Nigeria. Several issues have continued to engage the attention of writers on financial liberalization over time. More importantly, of particular concern here is that the implementation of financial reforms have been accompanied by variable rates of interest, exchange & real financial savings and an increase in the worries about the performance of banks in most economies and especially in the Nigerian economy. There are concerns that undesirable phenomena may have arisen because of the improper timing and wrong sequencing of the Nigerian reform policies overtime with their attendant inimical consequences. The objective of this study is to examine effect of financial liberalization on bank performance in a selected area of Ogun state and the effect of financial liberalization on the economic growth generally from the perspective of the McKinnon –Shaw Hypothesis. Ordinary Least Square (OLS) econometrics were employed for data spanning a period of thirty six years (i.e. 2009-2014). Two models were formulated, Real gross domestic product (RGDP) were used as proxy for economic growth and Returns on equity (ROE) were used as proxy for Bank performance (i.e. the dependent variables) while interest rate, real financial savings and exchange rates were used as the proxies for financial liberalization (i.e. the independent variables). The results of the study revealed that the impact of financial liberalization on bank performance in Ijebu-north area, Ogun State for the period of study though was significant and also for economic growth, especially as measured by the proxies of Return on Equity and Real gross domestic product but has not been significant enough to take Nigeria’s economy out of the woods. The study therefore recommends amongst other things that strong emphasis should be placed on the role of monetary policy in stabilizing macroeconomic variables so that it is not hampered by government fiscal policy of deficit financing.
TABLE OF CONTENTS
CHAPTER ONE: Introduction
1.1 Background of the Study
1.2 Statement of Problem
1.3 Objectives of the Study
1.4 Research Question and Hypotheses
1.5 Justification of the Study
1.6 Scope and Limitation of the Study
1.7 Definition of Terms
CHAPTER TWO: Literature Review and Theoretical Framework
2.1 Literature Review
2.2 Theoretical Background
2.2 Theories of Financial Liberalisation
2.2.1 The Nigerian Financial Sector before Sap
2.2.2 The Nigerian Financial Sector during Sap
2.2.3 Nigerian Financial Sector Reform
2.3 Empirical Review
CHAPTER THREE: Research Methodology
3.0 Introduction
3.1 Research Design
3.2 Population of the Study
3.3 Sample and Sampling Technique
3.4 Scope of the study
3.5 Instruments
3.6 Method of Data Collection
3.7 Method of Data Analysis
3.8 Model Specification
3.9 Criteria for Decision Making
CHAPTER FOUR: Data Analysis and Result
4.0 Introduction
4.1 Data Presentation
4.2 Results and Discussions
4.3 Hypothesis
4.4 Regression Result for Model Two
4.5 Hypothesis
CHAPTER FIVE: Summary, Conclusion and Recommendation
5.0 Summary of findings
5.1 Conclusion
5.2 Recommendations
REFERENCE
