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Banking Consolidation in Nigeria

Author

Listed:
  • 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 - Center for African, Asian and Latin American Studies.
  • Handle: RePEc:cav:cavwpp:wp99
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    File URL: http://pascal.iseg.utl.pt/~cesa/RePEc/cav/cavwpp/wp99.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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.

    More about this item

    Keywords

    Nigeria; banking consolidation; dynamic panels;

    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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