Introduction
1.1 Background to the Study
In a modern economic system, there is a distinction between the surplus and deficit economic units and consequently a separation of the savings and investment mechanism. This has necessitated the existence of financial institutions whose jobs include the transfer or remission of funds from savers to investors (borrowers) (Levine, 1997). One of such institutions are the deposit money banks. Shittu (2012) opines that the intermediation roles of the deposit money banks place them in a position of trustees of the savings of the widely dispersed surplus economic units as well as the determinant of the rate and shape of the economic development.
The Nigerian financial system is dominated by the banking sector, especially the deposit money banks which has the largest share of deposits in the economy and also provides the foundation for the development of financial system. Deposit money banks are financial institutions that provide financial services, such as, acceptance of deposits, issuance of loans and advances, mortgage lending and other financial products, such as savings accounts, current accounts, certificates of deposit, among others. According to the mainstream theory, deposit money banks act as financial.
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