Internal Lending Constraints and Deposit Money Banks' Performance in Nigeria

The banking business is full of both internal and external constraints that impede performance. This study attempts to empirically investigate the internal constrains to bank lending and performance. The paper adopts the major variables of volume of deposits, interest rates and shareholders' Funds against performance. The study finds out that while all the variables are significant, volume of deposit is the most important of the entire set of variables because of its capacity to transmit growth to all other variables especially shareholders fund. The rate of interest displayed a fairly lower level of significance of the variables. The study recommends that banks should introduce new products that can encourage further savings in the financial system.