One Dollar, One Bank Account: Remittance and Bank Breadth in Nigeria
Forthcoming in Journal of International Migration and Integration, 2014
21 Pages Posted: 2 Jul 2014
Date Written: June 30, 2014
This study examined remittance and bank breadth in Nigeria, using data from the 2011 World Bank Households Survey for the African migration project in Nigeria. The results based logistic regression technique reveal, among other things, that remittance has an inverse relationship with bank breadth. The reason put forward is that recipients prefer to hold foreign exchange from remittance; hence, they do not increase their demand for banking services. One of the key implications of the findings is the need for the commercial banks go beyond mere serving as liaison for remittance but incorporating elements of advisory services to the customers especially those that frequently receives remittance on how best they can utilize such fund for productive activities.
Keywords: Bank Breadth; Extra Cash Flow; Financial Development; Financial Institutions; Households; Remittance
JEL Classification: E22, F24, O16
Suggested Citation: Suggested Citation