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Banking Consolidation in Nigeria

Author

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  • Carlos Barros
  • Guglielmo Caporale

Abstract

This study examines the Nigerian banking consolidation process using a dynamic panel for the period 2000-2010. The Arellano and Bond (1991) dynamic GMM approach is adopted to estimate a cost function taking into account the possible endogeneity of the covariates. The main finding is that the Nigerian banking sector has benefited from the consolidation process, and specifically that foreign ownership, mergers and acquisitions and bank size decrease costs. Directions for future research are also discussed.

Suggested Citation

  • Carlos Barros & Guglielmo Caporale, 2012. "Banking Consolidation in Nigeria," CEsA Working Papers 99, CEsA - Centre for African and Development Studies.
    • Handle: RePEc:cav:cavwpp:wp99
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    References listed on IDEAS

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    Cited by:

    1. Emeka W. Dumbili, 2013. "McDonaldization and Job Insecurity," SAGE Open, , vol. 3(2), pages 21582440134, June.
    2. Ozili, Peterson, K, 2016. "Bank Profitability and Capital Regulation: Evidence from Listed and non-Listed Banks in Africa," MPRA Paper 75856, University Library of Munich, Germany.
    3. Ullah, Nazim & Uddin, Akther, 2018. "Will financial distress lead to banks Merger and Acquisition in Bangladesh?," MPRA Paper 108576, University Library of Munich, Germany, revised 01 Jan 2018.
    4. Ullah, Nazim & Abu Seman, Junaidah, 2018. "Merger and Acquisition in Banking Sector: A Review of the Literature," MPRA Paper 108575, University Library of Munich, Germany, revised 01 Jan 2018.
    5. Ibrahim Gerarh Umaru, 2013. "Isolating the ‘Pure’ Effect of the 2004/2005 Bank Consolidation Policy on Performance of Banks in Nigeria, Using the Chow Test (2000-2010)," Accounting and Finance Research, Sciedu Press, vol. 2(4), pages 1-47, November.

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    More about this item

    Keywords

    Nigeria; banking consolidation; dynamic panels;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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