THE EFFECT OF CONSOLIDATION ON BANKS OPERATIONAL EFFICIENCY IN NIGERIA

ABSTRACT The study examines the impact of bank consolidation on operational efficiency in First Bank Nigeria Plc Kaduna. Out of 125 staff, 100 were selected for the survey. Questionnaires constitute the main instrument for data collection. The mean scores was used to analyze data the research result indicates that: Consolidation improves services delivery and customer satisfaction through efficient operation as a result of good corporate governance mechanism. In spite of this positive effect consolidation brought too much liquidity that banks are yet to become use to in term of management.  The result of consolidation in Nigeria is a replay of what happened in other countries. The experience in other countries is that banking consolidations induced by government rather than market forces merely create cosmetic changes in the balance of banks without generating sustainable improvements in banking sector performance. It was recommended that Banks should give long term loans for capital financing to corporate organization this will help reduce liquidity
TABLE OF CONTENTS Title page --i Declaration ----ii Certification ---iii Approval- --iv Dedication- ---v Acknowledgment- --vi Table of Contents ---vii Abstract- -- -          ix
CHAPTER ONE:  INTRODUCTION 1.1Background to the study-- --1 1.2Statement of the problem- --4 1.3Research questions- ---5 1.4Objective of the study- ---5 1.5Statement of Hypothesis- ---6 1.6Significance of the study- --6 1.7Scope of the study--- - -         7
CHAPTER TWO:  LITERATURE REVIEW  2.1Introduction ----8 2.2A Review of Bank Concentration Theories-- -8 2.3Empirical Works on Consolidation in Other Countries -15 2.4Regulatory and Legal Framework of Capital Adequacy- -39 2.5Banks Distressed after the Consolidation Exercise-- -40 2.6Post-Consolidation Challenges --40
CHAPTER THREE:  RESEARCH METHODOLOGY 3.1Introduction ---58 3.2Resign Design --58 3.3Population and Sample Size of the Study --58 3.4Source of Data Collection- --59 3.5Method of Data Collection --59 3.6Method of Data Presentation and Analysis-----60         
CHAPTER FOUR:  DATA PRESENTATION AND ANALYSIS 4.1Introduction---------61 4.2Respondent Characteristics-------61 4.3Data Presentation and Analysis------63 4.4Test of Hypotheses--------68 4.5       Discussion of Findings --71
CHAPTER FIVE:  SUMMARY, CONCLUSION AND RECOMMENDATION 5.1Summary ---73 5.2Conclusion- --73 5.3Recommendations- --74 Bibliography-- --76 Appendix I- --79 Appendix II- -80