ABSTRACT:

This research examines the necessity and strategies of re-positioning commercial banks in order to enhance the productive capacities of Small and Medium-Scale Enterprises (SMEs). The study was intended to determine whether or not re-positioning commercial banks has impacts on SMEs and determine the effects of enhancing SMEs activities with regards to economic growth. The Ordinary Least Square (OLS) was used. The Augmented Dicky-Faller (ADF) Unit Root Test was used. The Error Correction Model (ECM) was used in recognizing inherent errors. Augmented Engle Granger (AEG) Co-integration Test was used to test for the impacts of commercial banks relationship with the capacities of the SMES. The results showed that there was co-integration between re-positioning of commercial banks and capacities of SMEs to deliver products/services and there was significant dispersion resulting from lending conditions and macroeconomic variables. It was concluded that the previous Global Financial Crisis really brought with it economic hazards leading to Banking Sector Crises. It was recommended that government should relax the conditions for lending offered by the Commercial Banks through the Central Bank, revitalize the Capital Markets and Prioritize the SMEs in order to contribute to Economic Growth.