Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between remittance inflows and profitability of deposit money banks has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Enugu State where operating conditions differ markedly from more developed markets.

Within the context of Enugu State, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of remittance inflows on profitability of deposit money banks, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

While remittance inflows is widely discussed in policy and industry circles, empirical evidence on its actual effect on profitability of deposit money banks within Enugu State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to remittance inflows are helping or hindering profitability of deposit money banks — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Remittance Inflows on profitability of deposit money banks in Enugu State.
2. To assess the extent to which remittance inflows influences profitability of deposit money banks within the study area.
3. To identify the challenges associated with remittance inflows in relation to profitability of deposit money banks.
4. To recommend strategies for optimizing remittance inflows in order to improve profitability of deposit money banks.

1.4 Research Questions

1. What is the effect of remittance inflows on profitability of deposit money banks in Enugu State?
2. To what extent does remittance inflows influence profitability of deposit money banks within the study area?
3. What challenges are associated with remittance inflows in relation to profitability of deposit money banks?
4. What strategies can be adopted to optimize remittance inflows in order to improve profitability of deposit money banks?

1.5 Significance of the Study

Beyond its academic contribution to the field of finance / banking, this study has practical value for management teams within Enugu State seeking to understand how remittance inflows translates into measurable outcomes around profitability of deposit money banks. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this PhD study confines itself to Enugu State, focusing specifically on how remittance inflows relates to profitability of deposit money banks within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.