Economics, Econometrics and Finance
8 years ago

Bank consolidation in Nigeria fails to increase credit availability for SMEs.

SSRN Electronic Journal
The Impact of Bank Consolidation on Credit Availability to Small and Medium Enterprises in Nigeria
Ahmad Bello Dogarawa

Paper Summary

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Bank consolidation in Nigeria has not positively impacted the availability of credit to Small and Medium Enterprises (SMEs). The study used data from all Deposit Money Banks in Nigeria in 2008 and found that SMEs still face financial constraints despite bank consolidation efforts. Recommendations include the government creating more practical financing schemes for SMEs and the Central Bank of Nigeria reviewing capital requirements for banks to support SME financing.