ABSTRACT

 The study is on evaluation of the impact of deposit money banks in 6 financing of sinai! scale enterprises in Nigeria from 1992 — 2011. The impact can he seen on the performance of small scale enterprises which if properly and adequately funded will contribute significantly to the growth of the economy. An attempt was made to relate deposit money banks credit to small scale I enterprises positively to the performance of small scale enterprises since it has been reviewed that inadequate finance or difficulty in accessing credit is one of the problems faced by small scale enterprises. Secondary data was used which includes contributions of deposit money banks to small scale enterprises, interest rate, DMBs total credit etc before and after consolidation of banks as provided by the CBN statistical bulletin and D1VlIBs retunhs. The data were analysed using multiple regression analysis. Findings were made from the study, it was discovered that the lending rate of deposit money banks to small scale enterprises are high which may deter small scale promoters from borrowing from the banks, rather the source for funds from other sources such as the informal banking sectors. Also the increased interest rate affects the the perfoimance of sinai! scale enterprises negatively. Recommendations were made following the researcher's findings that banks should increase fundings to the small scale enterprises with low interest rate for positive economic growth.