CHAPTER ONE: Introduction                                                                   1

1.1      Background to the Study                                                                  1

1.2      Statement of the Problem                                                                 8

1.3      Objective of the Study                                                                      10

1.4      Research Questions                                                                          10

1.5      Research Hypothesis                                                                        11

1.6      Significance of the Study                                                                  11

1.7      Scope of the Study                                                                           11

1.8      Organization of Study                                                                      12

CHAPTER TWO: Literature Review                                                          13

2.0      Introduction                                                                                     13

2.1      Conceptual Review                                                                          13

2.1.1   Meaning of Small and Medium Enterprises                                       13

2.1.2   The Contribution of Small Scale Industries to the Nigerian                                                    Economy                                                                              15

2.1.3   Role of Small and Medium Scale Enterprise on Economic Growth                                                                 of Developed and Developing Country                                              17

2.1.4   The Constraints of Small and Medium Scale Enterprises                    18       

2.1.5   Commercial Banks and its contribution to the Growth of Small                                             and Medium Enterprises                                                                   25

2.1.6   The Primary Function of Commercial Bank to SMEs                         26

2.1.7   Challenges and Opportunities for SMEs Funding                               27

2.1.8   Opportunities for Financial Institutions to Lend To SMES                     28

2.1.9   Challenges in Lending to SMEs                                                        28

2.2      Theoretical Review                                                                          29

2.2.1   Supply Leading Theory                                                                    30

2.2.2   Keynesian Theory of Consumption, Savings, Investment, and                                                 Interest Rate                                                                                    32       

2.3      Empirical Review                                                                           33

CHAPTER THREE: Research Methodology                                               42

3.1      Introduction                                                                                     42       

3.2      Re-statement of Research Hypothesis                                                42       

3.3      Research Design                                                                              42

3.4      Source of Data                                                                                 43       

3.5      Method of Data Analysis                                                                  43       

3.6      Model Specification                                                                         43       

3.6.1. Model Building                                                                                 43       

3.7.     Criteria for Decision Making                                                           44

CHAPTER FOUR: Analysis and Interpretation of Result                             47

4.1      Introduction                                                                                     47       

4.1.1: Evaluation Based on Econometric Criteria.                                                     49        

4.1.2. Coefficients of Explanatory Variables:                                                            50

4.2       TEST OF HYPOTHESIS                                                                               51

CHAPTER FIVE: Summary, Conclusion and Recommendations                     52       

5.1      Summary of Findings                                                                       52       

5.2      Conclusion                                                                                      53       

5.3      Recommendations                                                                            53

References                                                                                                 56                 

LIST OF TABLE

List    Title                                                                                                Page

1        Data Table                                                                                       48

1.1       Estimated Regression Result                                                                          49

1.2       A Priori Expectations                                                                                     49

Nigeria, as well known, is a country flowing with rich human and natural resources. Yet, like a twist of fortune, a good number of our citizens are living below the agreeable WHO human standard (i.e. in sub-human condition) and in abject poverty. The deposit money banks whose duty it is to assist financially the small and medium scale enterprises (SMEs) that serves as pivotal instrument of reducing abject poverty and enhancing economic growth in Nigeria could just be characterized as generally unstable and unreliable, in meeting the needs of these medium and small scale enterprises. Many scholars have carried out a lot of research to proffer some possible solutions to areas that are dysfunctional in the deposit money banks in Nigeria especially in the area of meeting the borrowing needs of SMEs. This study examines the impact of Deposit Money Banks on the growth of small and medium scale enterprises: 1995-2015. It further evaluate the relationship between Deposit Money Banks and SMEs performance in the Nigerian economy. To attain this, data were collected from Central Bank of Nigeria Published reports and National Bureau of Statistics. The study will cover a period of 20yrs spanning from 1995-2015. The paper employed the qualitative research design. OLS regression analysis was used to arrive at the objective result via E-View software. The study employs the econometrics technique in analyzing the secondary data on the variables of interest covering the period from 1995-2015. In the empirical investigation of aggregate function of deposit banks in Nigeria, multiple regression analysis were done. The empirical findings in this study have it that there is a direct (showing the constant coefficient of 1.332) and insignificant relationship between deposit money banks credit and SMEs growth in Nigeria, credit to private sector responds negatively, but insignificantly to the business growth rate in Nigeria, also bank lending rate reacts negatively and significantly to domestic investment in Nigeria. Among other recommendations is that the Nigeria government should recognized the importance of SMEs and attach priority to the development of SMEs by encouraging the deposit money banks to assist them with loans because they constitute a major tool in boosting employment in the country. 

Keywords: Deposit Money bank, Small and Medium Scale Enterprises, Economic Growth