The Impact of Interest Rate on the Growth of Financial Institutions in Nigeria (1986 - 2016)

This Article dwells on the Impact of Interest Rate on the Growth of Financial Institutions in Nigeria.

Interest rate which is the opportunity cost for capital has been theorized by many authorities in the sphere of Economics.

The research work carried out by the researcher used the OLS econometric method to analyze data obtained from CBN statistical bulletin. The result of the findings showed that interest rate has an inverse relationship with the growth of financial institutions in Nigeria. This may be as a result of the nonchallant attitudes of Nigerians towards making use of the opportunities of high interest rate given by the financial institutions.

Table of Content

Introduction......................................................1

Literature Review...........................................4

Theoretical Issues...........................................6

Empirical Framework..................................12

Methodology...................................................13

Method of Data Analysis...........................14

Data Presentation.........................................15

Findings/Interpretation..............................15

Conclusion...........................................................16

Recommendation...........................................16

References........................................................... 16