Volume : 8, Issue : 2, FEB 2022




Financial reforms were meant to remove the intrinsic limitation and disintegration of the financial system, and strengthening the key financial intermediation and deepening which propel banks for structural and financial efficiency. This study is then intended at empirically investigate how financial restructuring and financial intermediation influence the efficiency of Deposit Money Banks (DMBs) in Nigeria. Ten deposit money banks were surveyed which constitute the old and new generations in Nigerian banking industry. Secondary data were collected and analysis was done with the use of SPSS. The study is both qualitative and quantitative in nature. In the hypothesis formulated graphical illustration was used to measure bank performance, The finding reveals that there were key financial deepening indices affecting structure-conduct-efficiency of monetary policy target of DMBs between 2001-2018 in Nigeria. The result concluded that financial deepening indices should not be separate from financial reforms so as to facilitate the flow of funds for private sector development and generates increased savings, investment, and efficient allocation of capital for banks. It is hereby recommended that unethical practices like debt refinancing should be avoided by banks so that macroeconomic variables which include controllable and uncontrollable factors, such as financial deepening/M2 effect, Illiquidity could be well managed.



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