Poisson Regression Analysis on Economic Determinants of Commercial Banks Branches Expansion in Nigeria

Main Article Content

Eke, Charles N.

Abstract

This research work focused on economic determinants that contribute to Commercial Banks Branches Expansion in Nigeria from 1988–2016 covering 29 years. This study used secondary data extracted from the Central Bank of Nigeria Statistical Bulletin, 2016 and the Poisson Regression Analysis was used in the analysis. Based on the analysis from this work, it was discovered that there was a strong relationship existing between commercial banks branches expansion, population growth rate, bank assets, savings deposit and gross domestic product growth rate. Therefore, this study concludes that population growth rate, bank assets, savings deposit and gross domestic product growth rate influence commercial banks branches expansion in Nigeria. Finally, a recommendation was made that commercial banks management should consider these factors- population size of the area of interest, the bank asset, savings deposit and economic activity of the area of interest before the location of a branch.

Keywords:
Bank, expansion, poisson, regression.

Article Details

How to Cite
N., E. C. (2019). Poisson Regression Analysis on Economic Determinants of Commercial Banks Branches Expansion in Nigeria. South Asian Journal of Social Studies and Economics, 5(2), 1-8. https://doi.org/10.9734/sajsse/2019/v5i230143
Section
Original Research Article

References

Gupta PD, Cuha Sampti, Shiva Subramanian Krishnaswani. Firm growth and determinants. Journal of Innovation and Entrepreneurship. 2013;2:15.
DOI:10.1186/2192-5372-15

Ariambe Joseph Kipkemboi, Muturi Willy. Determinants of branch network of commercial banks in Kenya: A survey of commercial banks in Kisii County, Kenya. International Journal of Economics, Commerce and Management. 2015; 111(6).

Meesrichan Sittichai, Fungsuwan Wanno. The analysis of thai commercial banks branch expansion factors including leadership, location, cost and economics. Research Journal of Business Management. 2014;8(4):552-565.

Nam Sangjeong, Ellinger Paul N. Branch expansion of commercial banks in rural America. A Selected Paper Presented at the American Agricultural Economics Association Annual Meeting. Orlando, FL. 2008;27-30.

Ajide Kazeem B. Determinants of financial inclusion in Sub-Saharan Africa Countries: Does Institutional Infrastructure Matter? CBN Journal of Applied Statistics. 2017; 8:2.

Calcagrani Giorgio, De Bois Ricardo, Hester Donald D. Determinants of bank branch expansion in Italy. A Paper Presented at 40th Societa Italiana Degli Economisti Meeting held at the University of Amcona. 1999;29-30.

Ansong David, Chowa Gina, Adjabeng Bernard. Spatial analysis of the distribution and determinants of bank branch presence in Ghana. International Journal of Bank Marketing; 2015.

Hogg RV, McKean JW, Craig AT. Introduction to mathematical statistics. 6th Edition, Pearson Educational International, USA; 2005.

Nwachukwu VO. Principles of Statistical Inference. 3rd Edition, Zelon Enterprises, Port-Harcourt, Nigeria; 2008.

Hogg RV, Tanis EA. Probability and statistical inference. 8th Edition, Pearson Education International, USA; 2010.

Ansong D, Chowa G, Adjabeng BK. Spatial analysis of the distribution and determinants of bank branch presence in Ghana. International Journal of Bank Marketing. 2015;33(3):201-222.

Kodongo O. What drives cross-border bank expansion? Answers from Kenya. Economic Research South Africa (ERSA) Working Paper. 2016;584.