ABSTRACT
Finance houses play a major role in the financial system by providing complementary financial services to small, medium and other commercial enterprises. Although they fill relevant gaps left out by the conventional commercial banks, not much research is focused on them in the financial system in Nigeria. Using the stepwise econometric equations, the Unit root test, Co-integration, the Vector Error Correction (VECM), and the Impulse response models, this paper examined the effects of macroeconomic variables on the growth of finance houses in Nigeria. The results show that there is a significant positive relationship between the GDP and the growth by total assets of Finance houses on the short run but decreases in a 2 years lag and subsequent years. The policy implications are that apex regulatory agencies and management of finance houses should be proactive and consistent in conceptualizing sustainable policies directed at the performance and growth of finance companies in Nigeria on long term basis as poorly conceptualized short term measures are not likely to impact sustainably and significantly on the
growth of finance houses and their contributory role in the growth of the Nigerian economy.
KEYWORDS: ‘Finance Houses’, ‘Growth’, ‘GDP’, ‘Nigeria Economy’.
Download Article