3 DOES COMMERCIAL BANK LENDING INCITE GROWTH? THE IMPACT OF COMMERCIAL LENDING ON REAL SECTOR GROWTH IN NIGERIA

The study investigates the effect of bank lending on growth in Nigeria using a sample of data from 1989 to 2012; 23 years the method of estimation used in the study is the quantile regression estimation method. It was found that commercial bank lending was having a negative effect on growth while institutions were not sufficiently protecting customers from the negative effect that often arise when banks liquidate. Central bank policies were found to be minimizing bank losses and helping to drive economic growth in general. The policy implication of the finding is that lower interest rates and less stringent conditions are likely to increase bank lending in general and this could have far reaching effect in driving growth in Nigeria. Key words