NEXUS BETWEEN NON-INTEREST BANKING AND CONVENTIONAL BANKING: EVIDENCE FROM NIGERIA

The private and public sector of the economy benefit from the activities of banks. A banking system that has generated interest of recent time is the non-interest banking. This study examines the lending and administration of non-interest banks, data were collected from ten different states and were analyzed using Wilcox on signed ranks test. The study found that there is no significant difference in loan administration between the conventional and non-interest banks. It is also found that there is no significant difference in the level of acceptance of the two banking systems. In line with the findings it is recommended that as long term financing requires expertise which is not available, more avenues to train and create awareness on the system should be embarked upon. Also it is recommended that for non-interest system to capture more market, more non-interest banks that are fully fledged should be established. This will force the banks to be innovative and competitive compared with conventional banking in Nigeria. Key words: Islamic banking, conventional banking, Nigeria.