Chapter One — 1.1 Background to the Study

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

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 profitability of deposit money banks, 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 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 Deposit Mobilization on profitability of deposit money banks in Selected States in South-West Nigeria.
2. To assess the extent to which deposit mobilization influences profitability of deposit money banks within the study area.
3. To identify the challenges associated with deposit mobilization in relation to profitability of deposit money banks.
4. To recommend strategies for optimizing deposit mobilization in order to improve profitability of deposit money banks.

1.4 Research Questions

1. What is the effect of deposit mobilization on profitability of deposit money banks in Selected States in South-West Nigeria?
2. To what extent does deposit mobilization influence profitability of deposit money banks within the study area?
3. What challenges are associated with deposit mobilization in relation to profitability of deposit money banks?
4. What strategies can be adopted to optimize deposit mobilization 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 Selected States in South-West Nigeria seeking to understand how deposit mobilization 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 Deposit Mobilization and its relationship with profitability of deposit money banks 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.