IMPACT ON PROFITABILITY OF COMMERCIAL BANK IN NIGERIA OF INTEREST RATE DEREGULATION A CASE STUDY OF UNION BANK OF NIGERIA

ABSTRACT This researcher work is a survey of an analysis of the effect of interest rate deregulation on the profitability of commercial banks. The research to work tried to find out among other objectives, the impact of deregulation of  interest rate policy on the profitability of commercial bank. In carrying out the research, the regression and correlation method were use to analyze statistically to tools. The result obtained indicated from the hypothesis tested that the null hypothesis was rejected.  However, it was discovered from the findings of the research that deregulation has contributed relatively in the development of the economy thus.    It has engendered competition among bank and other institutions for deposits as well s some non  - traditional activities. Saving mobilization has also been encouraged by demand and supply which determined inter4est rate.  It has also induced the bank to source for idle funds, which are sent to deficit area to encourage loans and advances .  Sanity has been encouraged in some banks as they are now beat on judicious use of  their available funds and hence allocated it  to the most profitable ventures.   The study also reveal that there was also increased in the economy by deregulating interest rate, it become incumbent on the side of the researcher to make the following recommendation. That the changes in the rediscount rate at any given period should be  between the range of 15% and 25% depending on the monetary policy pursued or intended to be pursued.  That written the framework of the current market economy in relation to interest rate, there should  be a sufficient institutional control or regulatory legislation to ensure that the very vital sector of the economy that ordinarily would not survive the economic regime of deregulation are adequately created for. 
TABLE FO CONTENTS  Title page II Approval page III Dedication IV Acknowledgement V Abstract VII
CHAPTER ONE  1.0Introduction 1 1.1Background of the study 7 1.2Statement of the problem 9 1.3Objective of the study 10 1.4Researcher Questions 11 1.5Formulation of hypothesis 12 1.6Significance of the study 13 1.7Scope and Limitation of the  study 14 1.8Definition of terms  16
CHAPTER  TWO  REVIEW OF  RELATED LITERATURE   2.1Definition of Interest rates 19 2.2Structure of interest rates 22 2.3Different Approaches to interest rate determination 31 2.4Relationship Between profit and interest rate35 2.5Reasons and method of regulation 38 2.6Effects of Regulations on Banks 45 2.7Concept of deregulation 50 2.8Reasons for Deregulation 52 2.9  Implications of deregulation case Against Deregulation 54
CHAPTER THREE  RESEARCH DESIGN AND METHODOLOGY  3.1Research Design 64 3.2Sources of Date 65 3.21Primary Source of Date 65 3.22Secondary Sources of Date67 3.23Location of Date68 3.24Area of Study 68 3.25Population 69 3.26Sample size determination and Sampling Technique69 3.27Instruments of Data Collection 71 3.28Data Collection 72 3.29Data Treatment 72
CHAPTER FOUR  DATA PRESENTATION AND ANALYSIS  4.2Test of Hypothesis 75
CHAPTER FIVE  SUMMARY , RECOMMENDATION AND CONCLUSION  5.1Summary of Findings 105 5.2Recommendations 107 5.3Conclusion 108 Bibliography 114 Appendices