Saturday, 6 July 2013

POST CONSOLIDATION BANKING CRISES

00:46 |

POST CONSOLIDATION BANKING CRISES: CAPITAL, ASSETS AND DEPOSITS NEXUS AND POLICY OPTIONS

Abstract

The Nigerian banking system is undergoing a sector wide reform that will enable it to be part of the global trend in consolidation with opportunities of becoming strong, competitive and reliable. Evolving such a banking system in Nigeria requires a reform, of which recapitalization through mergers and acquisition forms a readily effective option. This paper has examined the post consolidation banking crises areas in the balance sheet components. The data used and the analysis are basically secondary and descriptive using cross-country empirical evidence and experiences available in documentations. The banking reform engenders opportunities and challenges for the banks and the regulators. Both the opportunities and the challenges have to be managed effectively to enable the banks and the Nigerian economy benefit from the full impacts of the consolidation exercise. The most outstanding challenge is that a post consolidation banking failure will be a disastrous consequence for the Nigerian economic system depending on policy options adopted in managing the balance sheet components and the regulatory role. The regulatory authorities need to re-engineer their regulatory and infrastructural bases in order to enable the banks perform to their optimum levels.

Suleiman .A.S. Aruwa
For full Article click here
https://docs.google.com/file/d/0B6MachyvRY4jZ3JYM184blNseXc/edit?usp=sharing

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