The effect of primary mortgage banks recapitalization on Nigeria’s mortgage market growth

Abstract

This research investigates the effect of Primary Mortgage Banks (PMBs) recapitalization on mortgage market growth in Nigeria with emphasis on the 34 PMBs in Nigeria. Ex-post Factor research design was adopted and data were extracted from the annual report and accounts of the Central Bank of Nigeria (CBN) covering a period of 7 years (2011-2017). The data were analyzed using multiple regression analysis and the result showed that Shareholders fund (SHF) has a positive and significant effect on mortgage depth (MD) while loan-to-deposit ratio (LDR) has an insignificant relationship with mortgage depth (MD). The study recommends that PMBs be recapitalized from time to time (five year interval) to maintain PMBs borrowing ability to secure more long-term debts as much as possible in order to create more mortgages that will further grow and develop the mortgage market, and PMBs should also put effort to increase lending from the mobilized deposits to further enhance the mortgage market and drive sufficient profit that will enable PMBs to remain afloat in the business to further support growth and development of the mortgage market.