Abstract
This study looked at how price intensification affected Nigerian bank expansion. The 37-year study period, from 1986 to 2022, was conducted in Nigeria. The CBN Statistical Bulletin, CBN Annual Report, and World Development Indicators provided the study’s data. The research design utilised in this work is quasi-experimental with an ex-post facto approach. In Nigeria, the BTAGR was used as a proxy for bank growth, and price intensification was measured using the ATR, CPI, PPI, and API. The results for long-term p-value for ATR is 0.7603, while the short-term p-value is 0.7582. The p-values for both short and long-term CPI are 0.9750. No substantial short or long-term impact of the Nigerian CPI on the BTAGR is observed. The p-values for PPI in both the short and long runs are 0.7093 and 0.7138, respectively. Within Nigeria, the impact of PPI on BTAGR is minimal in both the short and long run. Short-term and long-term API p-values were 0.2218 and 0.1739, respectively. The API has minimal immediate and long-term influence on the BTAGR in Nigeria. As a result, price intensification has little effect on bank growth in Nigeria, according to the research. The study conclude that, Nigerian policymakers should concentrate on putting in place efficient monetary policies to keep ATR under control, since excessive ATR might have a detrimental impact on BTAGR by reducing purchasing power and skewing investment decisions.
Keywords: Asset Price Inflation, Bank Growth, Consumer Price Index, Intensification, Price, Producer and Price Index.