The impact of regulatory-induced consolidation on banks' performance : case study of an emerging economy.

Student thesis: Doctoral Thesis

Abstract

This thesis examines the impact of policy-induced consolidation on banks' performance. The Nigerian bank consolidation of 2004/5 was one of the regulatory reforms initiated by the Central Bank of Nigeria (CBN) to tackle the country's deteriorating and weak banking sector by increasing the equity capital of banks and with the aim of making the banks more robust and resilient to shocks. This study utilises Impact evaluation technique to measure the effect of the policy intervention in the banking market, using the data of the Nigeria banks and banking industry from 2000 to 2010. Banks' performance were analysed based on eight performance indicators that served as bench marks with which the degree of success of bank consolidation policy were measured. The eight indicators are thus tied to the policy objectives which primarily are to enhance the bank's profitability, efficiency and riskiness. The measure of change in bank performance post-policy provides some informative evidence about the impact of the policy intervention. Methods of assessment therefore measure the change in performance of the banks (broadly classified into 3 distinct groups based on their mode of consolidation) in the post-policy period and compare it with their pre-policy performance, examining the trends and changes and making inferences based on appropriate statistical tests.
Date of Award26 Nov 2015
Original languageEnglish
Awarding Institution
  • University of Aberdeen

Keywords

  • Bank consolidation
  • Impact evaluation
  • Policy analysis
  • 'mergers & acquisitions
  • Bank Efficiency
  • Performance Indicators
  • Difference-in-Difference estimation
  • Bank regulation
  • Emerging market economy

Cite this

The impact of regulatory-induced consolidation on banks' performance : case study of an emerging economy.
Ibeji, N. (Author). 26 Nov 2015

Student thesis: Doctoral Thesis