Chapter One — 1.1 Background to the Study

Open Banking Regulation has increasingly attracted the attention of researchers, regulators, and practitioners concerned with profitability of deposit money banks. This growing interest reflects the recognition that open banking regulation does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Borno State.

Borno 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 open banking regulation, there remains limited consensus on the precise nature of its relationship with profitability of deposit money banks, particularly within Borno State. Many organizations continue to make decisions about open banking regulation without a clear, evidence-based understanding of how those decisions ultimately affect profitability of deposit money banks. 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 Open Banking Regulation on profitability of deposit money banks in Borno State.
2. To assess the extent to which open banking regulation influences profitability of deposit money banks within the study area.
3. To identify the challenges associated with open banking regulation in relation to profitability of deposit money banks.
4. To recommend strategies for optimizing open banking regulation in order to improve profitability of deposit money banks.

1.4 Research Questions

1. What is the effect of open banking regulation on profitability of deposit money banks in Borno State?
2. To what extent does open banking regulation influence profitability of deposit money banks within the study area?
3. What challenges are associated with open banking regulation in relation to profitability of deposit money banks?
4. What strategies can be adopted to optimize open banking regulation 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 Borno State seeking to understand how open banking regulation 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

The study is limited to an examination of Open Banking Regulation and its relationship with profitability of deposit money banks within the context of Borno State. 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.