ABSTRACT

The global phenomenon in the financial service industry is the consolidation of the financial activities towards ensuring financial stability. It is occurring at a rapid pace due to changes in economic environment, which often alter the constraints faced by financial service firms. 

The main objective of this study is to examine the effect of recapitalization of banks on Nigerian economy. Secondary data was gathered from CBN statistical bulletin on GDP, bank capitalization, number of distressed banks, number of banks, from the year 1990-2007. The gathered data was analyzed using the multiple regression models on statistical package for social sciences (SPSS). The research showed a strong correlation coefficient between the dependent and the independent variables. Hence, our finding revealed that there is a significant and thus positive relationship between bank recapitalization, number of banks, number of distressed banks and GDP.

Hence, this research work recommends that there should be effective training and manpower development, asset management company (AMC), cross border merger, and the use of modern information and communication technology. These are to ensure stability, effectiveness and efficiency in the system. Thus, from the analyzed data and other findings, this research work concludes by recapitalization of banks as improved the Nigerian economy. 

TABLE OF CONTENTS

Contents                                                                                 Pages

Title of page                                                                             i

Certification                                                                                      ii

Dedication                                                                               iii

Acknowledgement                                                                    iv-v

Abstract                                                                                   vi

Table of Contents                                                                     vii-viii

CHAPTER ONE: INTRODUCTION   

1.1     Background of the Study                                               1 – 3

1.2     Problem Identification                                                    3-4

1.3     Research Question                                                         4-5

1.4     purpose of the study                                                      5

1.5     Research Hypothesis                                                     5-6

1.6     Research Methodology                                                   6

1.7     Significance of the Study                                               6-7

1.8     Scope and Limitation                                                     7 – 8

1.9     Plan of Study                                                                 8-9

1.10 Definition of Term                                                            9-10

          References                                                                      11-12

CHAPTER TWO: LITERATURE REVIEW 

2.0     Introduction                                                                   13-14

2.1     Evolution of banking in Nigeria                                      14-21

2.2     The Role of the Banking System in Economic                21-23

2.3     Historical Perspective of Recapitalization                       23-27

2.4     Banking Sector     Reform and Bank Consolidation      27-29

2.5     Facet in Reform and Conceptional Issues on

Consolidation in the banking Sector                              29-30

2.6     Rationale for Banking System Reform in Nigeria            31-32

2.7     The Objectives of banking Sector Reform                       32-34

2.8     Drives and Capital Success Issues in the

Banking Consolidation                                                  34-36

2.9     Nigerian Banking Industry Consolidation                      36-39

2.10   The Challenges of Consolidation                                    39-41

2.11   Banks that met the N25 Billion Minimum capital

          requirement and the Banks constituting each group     41-43

2.12   Selected Literature Review                                             43-44

          References                                                                      45-46

CHAPTER THREE: RESEARCH METHODOLOGY

3.1     Introduction                                                                   47     

3.2     Re-statement of Hypothesis                                           47-48

3.3     Re-statement of Model                                                   48

3.4     Nature and Source of Data                                             48-49

3.5     Method of Analysis                                                         49

3.6     Scope and Limitation                                                     49-50

          References                                                                      51-52

CHAPTER FOUR: ANALYSIS OF DATA AND DISCUSSION OF RESULT

4.1     Introduction                                                                   53

4.2     Presentation of Result                                                   53-54

4.3     Discussion of Result                                                      54-56

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1     Introduction                                                                   57

5.2     Summary                                                                       57-58

5.3     Conclusion                                                                     58-59

5.4     Recommendation                                                           59-60

5.5     Suggestion for Further Study                                         61

         Bibliography                                                                   62 – 64

          Regression