Chapter One — 1.1 Background to the Study

Deposit Mobilization has increasingly attracted the attention of researchers, regulators, and practitioners concerned with bank performance. This growing interest reflects the recognition that deposit mobilization does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Kano State.

Kano State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

Despite a growing body of literature on deposit mobilization, there remains limited consensus on the precise nature of its relationship with bank performance, particularly within Kano State. Many organizations continue to make decisions about deposit mobilization without a clear, evidence-based understanding of how those decisions ultimately affect bank performance. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Deposit Mobilization on bank performance in Kano State.
2. To assess the extent to which deposit mobilization influences bank performance within the study area.
3. To identify the challenges associated with deposit mobilization in relation to bank performance.
4. To recommend strategies for optimizing deposit mobilization in order to improve bank performance.

1.4 Research Questions

1. What is the effect of deposit mobilization on bank performance in Kano State?
2. To what extent does deposit mobilization influence bank performance within the study area?
3. What challenges are associated with deposit mobilization in relation to bank performance?
4. What strategies can be adopted to optimize deposit mobilization in order to improve bank performance?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around bank performance. For managers and practitioners within Kano State, the study provides practical insight into how deposit mobilization can be better managed. Finally, it contributes to the academic literature on finance / banking by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this BSc study confines itself to Kano State, focusing specifically on how deposit mobilization relates to bank performance within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.