Effect Of Bank Merger And Acquisition On Small Business Lending In Nigeria (A Study Of Gtb And Uba In Nigeria)

ABSTRACT The study is on “the effect of bank merger and acquisition on small business lending in Nigeria”. The researcher set to explain the effect of merger and acquisition on bank lending behavior the effect is divided into four. One is the static effect and the other three are types of dynamic effect; restructuring effect, direct effect and external effect. Entangling these four effects allowed us to identify how mergers and acquisition affect small business lending. The data was collected using secondary data and multiple regression technique was adopted in analyzing the model. The following are our summarized findings; static effect, it is evident that the larger the size of a bank by M&A, the more it tends to lend to small businesses; restructuring effect, change in banking focus, resulting in poor lending to small businesses even with M&A; it also revealed a poor reaction of other lenders besides micro-financial institution in the local market to opportunities created by the restructuring and direct effect of M&A is good for the economics development of Nigeria. It is recommended that measures be put in place to enable existing banks in the country to increase in size or capital base so that the banks can make more funds available for small business lending. Key players in the banking sector should consider both the static and dynamic effects of bank merger and acquisition should the need arise to consolidate the sector again in the near future. Government through the central bank of Nigeria should examine the policy of already consolidated banks to ensure the banks do not change its focus away from providing adequate loan facility to small businesses. Cooperative societies and other non-banking institution should be sensitized to lend fund to small businesses in their localities as this measure can held grow our economic.The researcher believes that his methodology represents an extension of the existing research literature that may be usefully applied elsewhere. In particular, the inclusion of the static and dynamic effects of all of the major types of bank ownership in the model is important to avoid potentially biased and misleading results. 

TABLE OF CONTENTS
Title pageiDeclarationiiCertificationiiiDedicationivAcknowledgementvTable of contentviList of tablesviiAbstractxi
CHAPTER ONEINTRODUCTION11.Background to the study11.2Statement of problem51.3Objectives of the study81.4Research questions91.5Research hypotheses101.6Scope of the study101.7Significance of the study111.8Organization of the Study131.9 Definitions of terms14
CHAPTER TWOLITERATURE REVIEW AND THEORETICAL FRAMEWORK2.1The concept of merger and acquisition      182.2 Theoretical framework 232.2.1 Bank capital channel model232.2.2 Capital constraint model242.2.3 The lifecycle approach252.2.4 The pecking order theory252.2.5 Agency theory262.3 History of Mergers and Acquisition In Nigeria272.4Reasons for mergers and acquisition292.5The role of banking system in the economy362.6 Rationales for banking system reform in Nigeria382.7Benefit of mergers and acquisition of the Nigerian banking system402.8Challenges of bank mergers and acquisitions432.9 Financial situations of banks and small and medium Businesses in Nigeria462.10Banks’ lending policies towards small and medium
Enterprises522.11Critical factors influencing banks’ lending to small and552.12 The effect of bank merger and acquisition on small572.12.1The four effects of merger and acquisition on bank 62
CHAPTER THREERESEARCH METHODOLOGY3.1Research design69
3.2Methods of data collection and data sources703.3 Limitations of the study713.4Model Specification713.5Estimation technique and validation73
 CHAPTER FOURDATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS4.1Data Presentation774.2 Analysis of data894.2.1 Analysis of regression results of the impact of bank894.2.2 Analysis of regression results of the impact of bank deposit on small business lending using
Pre-merged data of STB (Static effect)914.2.3 Analysis of regression results of the impact of bank deposit on small business lending using pre-merged dataof UBA/STB (static effect)934.2.4 Analysis of regression results of the impact of bank deposit on small business lending using
Pre-merged data of GTB (static effect)934.2.5 Analysis of regression results of the  dynamic effect of
merger and acquisition on small business lending.944.3Test of Hypotheses97
4.3.1HypothesisI974.3.2Hypothesis ii974.3.3Hypothesis iii984.3.4Hypothesisiv984.4Discussions of findings99
CHAPTER FIVESUMMARY, CONCLUSION AND RECOMMENDATIONS5.1Summary of findings1015.2Conclusion1015.3    Recommendations        102References