Stability in Banking Industry Liquidity and Entrepreneurial Development in Nigeria

Abstract

In both developed and developing countries, bank liquidity and entrepreneurial development has become everybody’s concern because it reflects in stock values, asset values and price increases for normal everyday items. The effect of liquidation on banking industry and entrepreneurial stability has helped to sustain public confidence in the solvency of the bank. The purpose of this project work was to investigate liquidity on banking industry and entrepreneurial stability in Nigeria. The study used quantitative time series data and Special Package for Social Sciences (SPSS) method during analysis. The result of our analysis shows that there is long run relationship between the level of bank failure, entrepreneurial development and stability of Nigerian banking industry. The study also found that proper management of non-performing loan is necessary for the stability of Nigerian banking industry and sustainability of the entrepreneurial development in Nigeria. The implication of this is that if the policy makers did not control the level of non-performing loan, it will continue to bring about bank failure and then negate the basic objectives of entrepreneurial development in Nigeria. We therefore recommend that, there is an urgent need for effective monitoring of the level of bank failure in Nigeria to allow for acceleration of banking industry stability and entrepreneurial development in Nigeria.