Impact of Financial Deepening on Deposit Banks Performance in Nigeria: Leads and Lags Model Approach

Financial sector experienced continuously, different forms of financial deepening measures, thus the study empirically investigates the impact of financial deepening on the performance of deposit banks in Nigeria proxied by return on assets from 2000 – 2024, The study specifically examined the impact of broad money supply, market capitalization, customers credit access, and customers deposits on return on assets. The leads and lags model of dynamic ordinary least squares (DOLS) was used to investigate the impacts. Findings revealed that all the financial deepening variables captured in the model has significant and positive impact on deposit banks performance in Nigeria. In the light of the findings, the paper recommends for sustained financial deepening measures for sustained performance of deposit banks in Nigeria.