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Pre-Consolidation and Post-Consolidation of Nigerian Banking Sector: A Dynamic Comparison

Author

Listed:
  • Anthonia T. Odeleye

    (Department of Economics, Caleb University, Imota, Lagos State, Nigeria)

Abstract

The Central Bank of Nigeria's (CBN) recent reform to consolidate the banking sector through drastic increase to changed their mode of operations and their contributions to the nation's economic development. Drawing on original research on consolidation of banking sector, this study examined the impact of consolidation on performance of Nigerian banks for the period 1999 to 2011. It employed Chow test; a parameter stability test which showed that there was parameter instability after the consolidation. System GMM (generalized methods of moments) estimation was further used to ascertain the directional and magnitudinal (size) impact of consolidation on the banks' efficiency. With emphasis on earnings per share as a proxy for consolidation, it is inferred that Nigerian banking consolidation exercise did impact their efficiency positively.

Suggested Citation

  • Anthonia T. Odeleye, 2014. "Pre-Consolidation and Post-Consolidation of Nigerian Banking Sector: A Dynamic Comparison," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 4(1), pages 27-34.
    • Handle: RePEc:eco:journ1:2014-01-4
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    References listed on IDEAS

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    Cited by:

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    2. Chidozie Umeh & Nelarine Cornelius & James Wallace, 2024. "A Bourdieusian Exploration of Ethnic Inequalities at Work: The Case of the Nigerian Banking Sector," Work, Employment & Society, British Sociological Association, vol. 38(4), pages 885-910, August.
    3. Abimbola Oluwaseyi ADEMOLA, 2023. "Determinants Of Deposit Money Banks’ Credit To Manufacturing Sector In Nigeria," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 8(1), pages 161-175.
    4. Thilakaweera, Bolanda Hewa & Harvie, Charles & Arjomandi, Amir, 2016. "Branch expansion and banking efficiency in Sri Lanka’s post‐conflict era," Journal of Asian Economics, Elsevier, vol. 47(C), pages 45-57.
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    6. Damisah, Osikwemhe & Ekor, Maxwell, 2019. "Re-appraising the effect of the banking sector on the Nigerian economy," MPRA Paper 107841, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

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