Poisson Regression Analysis on Economic Determinants of Commercial Banks Branches Expansion in Nigeria

Abstract

This research work focused on economic determinants that contribute to Commercial Banks Branches Expansion in Nigeria from 1988–2016 covering 29 years. This study used secondary data extracted from the Central Bank of Nigeria Statistical Bulletin, 2016 and the Poisson Regression Analysis was used in the analysis. Based on the analysis from this work, it was discovered that there was a strong relationship existing between commercial banks branches expansion, population growth rate, bank assets, savings deposit and gross domestic product growth rate. Therefore, this study concludes that population growth rate, bank assets, savings deposit and gross domestic product growth rate influence commercial banks branches expansion in Nigeria. Finally, a recommendation was made that commercial banks management should consider these factors- population size of the area of interest, the bank asset, savings deposit and economic activity of the area of interest before the location of a branch.