BANK CONSOLIDATION AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Author: ADOGBO ONOME OMENA

Abstract

This study evaluated the impact of bank consolidation on financial performance of Deposit Money Banks in Nigeria for the period of 1997 to 2014, compromising Nine years Pre and nine years post consolidation eras. This study employed the use of secondary data gathered from the audited financial reports of selected banks in Nigeria. The population of study comprises twenty-two (22) deposit money banks in which ten (10) banks were drawn using purposive sampling techniques. Paired sample t-test was used to test the hypotheses formulated. The findings of the study shows that there is no significant relationship between consolidation and financial performance in Pre Consolidation era, but significant relationship exists between consolidation and financial performance in Post Consolidation era. Based on the findings, the study recommends that Deposit Money Banks should grant more loans to the real sector of the economy to enhance economic growth and development in Nigeria and CBN should also consider option of making Bank Consolidation a regular exercise to ensure that all loopholes are blocked to avoid abuse of funds by the Banks Executives.

Supervisor: DR. C. C. OSUJI