IGBOSCHOLARS INTERNATIONAL JOURNAL OF IGBO SCHOLARS FORUM, NIGERIA

This study was aimed at carrying out a comparative overview of financial intermediation in commercial banking between Nigeria and Germany. The study adopted qualitative research design as data was sourced from secondary sources. The mode of analysis was content analytical approach which helped to make interpretations coherently. The study revealed among others that commercial banks in Nigeria are no longer taking business risks but engaging in financial risks. Financial intermediation is an opaque arrangement in which most banks are set up to provide financial support to their founders and major shareholders than to the Nigerian economy; meanwhile the German commercial banking industry was found to have played prominent role in financial intermediation, and considered a key factor in Germany’s industrialization. The paper concluded that there is need to redirect the commercial banks -firms’ credit relations to build Nigeria’s economy and recommended the opening up of Nigeria commercial banks to the global investments, to ensure transfer of finance, managerial and technical skills needed to run a commercial banking system that can respond to the needs of the national and international economy.

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