Recapitalisation Policy and the Banks Performance in Nigeria (1995-2010)

ABSTRACT 

The  objective  of  this  study  is  to  assess  the recapitalization policy  and  the  banks  performance  in  Nigeria, also  to  know  the  history  of  recapitalization  policy  and  how  it has fare over the years, and the benefit of this recapitalization to Nigeria banks. Data were sourced from secondary sources, this  secondary  data  include,  online  source,  journals  and central  bank  of  Nigeria  statistical  bulletin  publication.  The major  findings  indicate  that  recapitalization  policy  has significant  effect  on  bank  performances  in  Nigeria,  these significant  effect  are  enhancing  capabilities  to  finance  larger project,  increase  in  financial  deepening,  increase  in  foreign investment, building public confidence, investment in the real sector  of  the  economy,  higher  returns  to  the  shareholder, financial system stability etc. All these significant effect is as a result  of  increment  of  capital  base  of  banks  over  the  years, saving mobilization and real gross domestic products.

TABLE OF CONTENT 

Title page       

Approval page --- i      

Dedication --------ii 

Acknowledgement   ----------------------iii 

Abstract   ----------iv 

CHAPTER ONE 

1.0    Introduction      ----------------------9 

1.1 Background of the study ----------9-11 

1.2 Statement of research problems --11-12 

1.3 Objectives of the study --------------12-13 

1.4 Significance of the study ------------13-14 

1.5 Statement of research hypothesis --14 

1.6 Scope and limitation of the study ---14 

CHAPTER TWO 

2.0 Definition of concepts ---------------------15 

2.1.1  Concept of recapitalization ------------15 

2.1.2 Banking Industry 16 

2.1.3 Consolidation --16-17 

2.1.4 Reform -----------17-18 

2.2 Theoretical Framework -------------------18 

2.2.1 History of banks recapitalization in Nigeria --------------18-21 

2.2.2 Bank consolidation through merger and acquisition ----21-23 

2.2.3 Organic (internal) Growth ------------23-27 

2.3 Empirical Framework -----------------27 

2.3.1 Historical Background of Banking in Nigeria -------------27-33 

2.3.2   Post Consolidation ------------------33-36 

2.3.3 Examination of the capital base of Nigeria banks after the consolidation exercise -----------36-42 

2.4 Challenges Facing the Banking Industry In Nigeria -----42-48 

2.5 Rationale for Recapitalization in the Nigerian Banking Industry ---------------------48-50 

2.6 Benefits of Recapitalization -----------50-56 

CHAPTER THREE, 

3.0   Research methodology -----------------57 

3.1 Method of Analysis --------------------57-58 

3.2 Model Specification -------------------58 

3.3 Estimation Procedure -----------------58-59 

3.4     Evaluation method ---------------------59 

3.4.1 Evaluation based on Economic Criteria -----------------------59 

3.4.2 Evaluation based on Statistical Criteria ----------------------60 

3.5 Data Sources and Adjustments ------60-61 

CHAPTER FOUR, 

4.1 Presentation of Result ------------------62 

4.2 Analysis of the Result -------------------62 

4.2.1 Analysis of the Regression Coefficients ---------------------62-63 

4.2.2  Analysis of the Evaluation Method -63 

4.2.2.1Evaluation based on Economic Criteria ------------------63-64 

4.2.2.2Evaluation based on Statistical Criteria ------------------64-66 

4.2.2.3 Evaluation based on Econometric Criteria --------------66-69 

4.3 Evaluation of research hypothesis -----69-70 

CHAPTER FIVE, 

5.1 Summary policy recommendation and Conclusion -------71 

5.1.1 Summary --------71-72 

5.1..2 Policy recommendation ------------72-73 

5.1.3 Conclusion --------73 

Bibliographies  

Appendices