Impact Of Recapitalization On The Performance Of The Nigerian Banking Industry

ABSTRACT

This study examines the impact recapitalization has on the performance of the Nigerian banking industry. The study therefore,

addresses itself to determining the impact of bank recapitalization on bank performance in Nigeria overtime and also evaluate the impact of bank

recapitalization on banks’ size and strength in Nigeria. The study used the descriptive research design and the source of data is secondary source using

documentation. The population of the study is the 25 banks listed after the 2005 banking sector recapitalization programme. The study employed the use of

secondary data gathered from CBN Statistical Bulletin (2013). T-test analysis tool was carried out with Statistical Package for Social Sciences (SPSS v. 20)

to check if there is any significant difference between the performance of Nigerian banks between pre and post recapitalization period tested at 95%

confidence interval for a period of 16years (1998-2013). The study used total Assets (TOA), Money Supply (M2) to represent proxies of the Banks’

performances and Capital to Private Sectors (CPS) as proxy for Banks’ size and strength. The results obtained using T-test statistics indicated that there is

significant difference between the impacts of pre recapitalization and post recapitalization on the performance of Nigerian banks. The study also found

that there is significant difference between the impacts of pre recapitalization and post recapitalization on the size and strength of Nigerian

banks. Recapitalization, according to the study has significant impact on the total assets of the banks. The study also found that the banks have enough

money to supply during the post recapitalization era than the pre recapitalization era. Hence, the study concludes that recapitalization has

significant impact on the financial performance of Nigerian banks. The study therefore recommends that the recapitalized banks in Nigeria should hasten the

expansion of their branch both in the rural and urban areas in order to bring banking service delivery nearer to their customers. In also doing so, their

performance is also improved. The study also recommends that Nigerian banks should be more accustomed to the latest technology in the banking sector so as

to meet up with international standards and to compete favorably on the international scene.

TABLE OF CONTENT

CHAPTER ONE

INTRODUCTION

CHAPTER TWO 

LITERATURE REVIEW

CHAPTER THREE 

RESEARCH METHODOLOGY

CHAPTER FOUR

RESULTS AND DISCUSSION

CHAPTER FIVE 

SUMMARY OF FINDINGS AND RECOMMENDATIONS

References