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 Selected States in South-West Nigeria.

Selected States in South-West 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 States in South-West 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 States in South-West 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 States in South-West 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

Beyond its academic contribution to the field of finance / banking, this study has practical value for management teams within Selected States in South-West Nigeria seeking to understand how deposit mobilization translates into measurable outcomes around bank performance. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Deposit Mobilization and its relationship with bank performance within the context of Selected States in South-West Nigeria. It reflects a clearly defined scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.