THE IMPACT OF BANK CONSOLIDATION ON OPERATIONAL EFFICIENCY IN FIRST BANK NIG. PLC

INTRODUCTION The consolidation of banks has been the major policy instrument being adopted in correcting deficiencies in the financial sector. The economic rationale for domestic consolidation is indisputable. An early view of consolidation in banking was that it makes banking more cost efficient because larger banks can eliminate excess capacity in areas like data processing, personnel, marketing, or overlapping branch networks, cost efficiency also could increase if more efficient banks acquired less efficient ones. Though studies on efficiency in banking raised doubts about the extent of overcapacity, they did point to considerable potential for improvement in cost efficiency through mergers. Consolidation is viewed as the reduction in the number of banks and other deposit taking institutions with a simultaneous increase in size and concentration of the consolidation entries in the sector (Bis 2001). 
The driving forces in bank consolidation include better risk control through the creation of critical mass and economics of scale advancement of marketing and product initiatives, improvements in overall credit risk and technology exploitation. These drivers have led to improved operational efficiencies and larger and better capitalized institutions. The results of this policy are neither here nor there contrary to the expectation. The most difficult aspect of consolidation is the ones induced by government through mergers and acquisition. Farlong (1994) claimed that consolidation in banking is distinct 1990’s market induced consolidation normally holdout promises of scale economics, gains in operational efficiency, profitability improvement and resources maximization, the outcomes have however, not totally confirmed these supposed benefits and they have varied across jurisdictions, especially when compared with the particular pre-consolidation expectations.
CHAPTER ONE INTRODUCTION 1.1Background of the Study 1.2Statement of the Problem 1.3Objectives of the Study 1.4Significance of the Study 1.5Research Questions 1.6Scope of the Study 1.7Definition of Terms
CHAPTER TWO LITERATURE REVIEW 2.1 Introduction  2.2Concept of Bank Consolidation in Nigeria 2.3Impact of Consolidation on the Banking Sector 2.4The Performance of Commercial Banks in the Post-Consolidation Period in Nigeria  2.5Post – Consolidation Challenges 2.6Summary of the Literature
CHAPTER THREE RESEARCH METHODOLOGY 3.1Introduction 3.2Research Design 3.3Area of Study 3.4Population of the Study 3.5Sample Size 3.6Instrument of Data Collection   3.7Validity of the Instrument 3.8Reliability of the Instrument 3.9Method of data Presentation and Analysis
CHAPTER FOUR DATA PRESENTATION AND ANALYSIS 4.1Introduction 4.2Respondents Characteristics 4.3Data Analysis 4.4Summary of Findings
CHAPTER FIVE SUMMARY CONCLUSION AND RECOMMENDATION 5.1Summary 5.2Conclusion 5.3Recommendations  BIBLIOGRAPHY  APPENDIX