Chapter One — 1.1 Background to the Study

In recent years, Deposit Mobilization has emerged as a critical factor shaping bank performance across organizations operating in and around Selected Public Universities in Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how deposit mobilization relates to bank performance has become an important area of both scholarly and practical concern.

Selected Public Universities in Nigeria 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 Selected Public Universities in Nigeria. 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 Selected Public Universities in Nigeria.
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 Selected Public Universities in Nigeria?
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 Selected Public Universities in Nigeria, 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 study confines itself to Selected Public Universities in Nigeria, 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.