BANK CAPITAL REQUIREMENT AS REGULATORY TOOL IN NIGERIA – A CRITIQUE

Ewah, Evelyn Bassey and Ugwuanyi, Georgina Obinne (2015) BANK CAPITAL REQUIREMENT AS REGULATORY TOOL IN NIGERIA – A CRITIQUE. International Journal of Economics, Commerce and Management, I. pp. 1-18. ISSN 2348 0386

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Abstract

This research examines (with an intent to ascertain) whether bank capital requirement as a regulatory tool in Nigeria enhances bank performance. Being an ex-post- facto research, it covers data collected from NDIC annual reports from years 2000 – 2009; and was analyzed with bank performance evaluation indicators. A t-test statistic technique was employed to test the equality of the means of the pre and post 2005 key profitability ratios of selected quoted banks – using the year 2005 recapitalization as the base year. In both the pre and post recapitalization analyses of descriptive statistics and the t-test statistic technique employed, most of the bank performance evaluation indicators revealed that the pre-recapitalization means are better than the post recapitalization means and the t-test shows that the difference between the two means at 5% level of significance is not statistically significant. On the aggregate, the analysis of the profitability indices of banks and test of equality of the pre and post means for 2005 recapitalization exercise reveal that recapitalization without a conducive and sound macroeconomic environment does not always transform to enhanced bank performance. The research recommends for a study on the suitable macroeconomic environmental factors that would enhance bank performance alongside capital base.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance H Social Sciences > HJ Public Finance
Divisions:	Faculty of Management and Social Sciences
Depositing User:	mrs chioma hannah
Date Deposited:	17 Apr 2019 12:56
Last Modified:	17 Apr 2019 12:56
URI:	http://eprints.gouni.edu.ng/id/eprint/1140

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