Empirical Analysis of the Impact of Interest Rate Deregulation on the Performance of Deposit Money Banks in Nigeria from 1989-2018

The research empirically analyzed the impact of interest rate deregulation on the performance of deposit money banks in Nigeria for the period from 1989-2018. The objective of the study is to analyze the impact of interest rate deregulation on the performance of deposit money banks in Nigeria. While the null hypothesis is that interest rate deregulation has no positive impact on performance of deposit money banks in Nigeria. The research employed Ordinary Least Square (OLS) regression techniques. The research shows a long and short run relationship between the dependent variable (Total assets of Deposit money banks) and the independent variables (Interest rate on savings, Interest rate on Deposit and Interest rate on lending). The research concluded and recommended that Banks should embrace interest rate deregulation in such a way that they can generate more income on their assets and adequate efforts should be made by banks to increase their level of investments as that will help in generating reasonable returns on their assets.