BANKING SECTOR

This study investigates the impact of bank credit on economic growth in Nigeria applying the multivariate ordinary least square (OLS) technique using time series data from 1981 to 2020. Real gross domestic product (RGDP) is the dependent variable and proxy for economic growth while bank credit to the private sector (PSC) and aggregate bank credit (ABKC) were proxies for bank credit respectively. A major finding is that there is a significant negative relationship between bank private sector and economic growth while a significant positive relationship was found between aggregate bank credit and economic growth. Inflation rate and trade openness were found not to be a key factor that influence economic growth in Nigeria for the period studied. The study recommends that government should ensure strict regulatory measures through the use of its monetary policies to regulate the banking sector. The Central Bank of Nigeria, through the use of its credit control instruments should regulate the interest rates to enable the private sector borrow at a moderate rate thereby enhancing investment, which in turn leads to economic growth. Also, the monetary authorities and other financial institutions should be strengthened in their regulatory frame work and capacity to maintain financial stability and banking sector reforms.

The rapid advancement of digital technology has significantly transformed the banking sector, with financial institutions increasingly leveraging digital platforms to enhance service delivery, improve customer experiences, and foster long term relationships. This study examines the relationship between digital technology and customer loyalty in the banking sector, focusing on Zenith Bank in Benin City, Nigeria. Despite substantial investments in digital banking solutions such as mo bile applications, internet banking, automated teller machines (ATMs), and AI driven customer support systems, challenges such as service reliability, security concerns, and limited customer awareness persist, affecting customer retention. This study employs a quantitative research approach to assess how key digital banking factors including accessibility, service quality, security, and customer awareness influence customer loyalty. A structured survey was administered to customers of Zenith Bank in Benin City, and the collected data was analyzed using statistical techniques to identify significant relationships. Findings indicate that while digital banking enhances convenience and accessibility, issues such as security concerns and system downtimes negatively impact customer loyalty. Moreover, customer awareness and trust in digital platforms play a critical role in determining long-term engagement with digital banking services.