The impact of mergers and acquisitions in the Nigerian banking consolidation programme PDF Download

Author: Oluseyi Oluwabukunmi Aju
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Oluseyi Aju
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659435508
Category :
Languages : en
Pages : 132

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Book Description
This work reviews conceptual perspectives on mergers and acquisitions, and its impact on the Nigerian banking consolidation program. Through an exploratory research approach that relied on secondary data, relevant financial ratios were used in analyzing a five-year (2002-2007) financial statement of Skye Bank and its post-merger share price movement. An unsteady post-merger profitability was initially evident between year 2004 and 2005, however, the study shows a fairly substantial improvement in the overall financial performance of Skye Bank over the period of five years covered in the analysis. This study further analyzes relevant factors that could have enhanced an improved or unimproved post merger performance of Skye Bank. A performance summary of Skye Bank between 2008 and 2009 was also explored. The study concludes with appropriate recommendations.

Author: Olufemi Saibu
Publisher:
ISBN:
Category :
Languages : en
Pages : 9

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The paper examines the impact of bank consolidation on financial inter-mediation using data from the Nigerian bank industry from 2002 to 2010. Two models were specified and estimated: one for the lending activity and the other for the deposit activities. The model for lending activity has an interest rate on the loan as the dependent variable and deposit rate represents the dependent variable in the deposit model. The results showed that merger and acquisition, which was the main policy instrument for bank consolidation, has a significant effect on both lending and deposit activities of the banks in Nigeria. The result also shows that changes in the degree of average competition in bank markets proxied by the spread between interest rate among the banks is positive and significant in both the loan and deposit markets. This confirms the high level of price competition among the banks. The consolidation exercise had significant positive effects on both financial inter-mediation and especially on deposit mobilization. The study concluded though, the consolidation policy might have had other side effects, it has at least led to higher deposit mobilization, higher competition but however, it has led to higher cost of borrowing and spread between lending and deposit rates.

Author: Joseph Femi Adebisi
Publisher: LAP Lambert Academic Publishing
ISBN: 9783847329466
Category :
Languages : en
Pages : 224

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Book Description
The book was written with the central focus on the impacts of bank consolidation in line the guidelines and directives of the Central Bank of Nigeria. With the minimum capital base of twenty five billion naira (N25bn)which most banks then could not afford, the most appropriate option left was for them to embark on merger and acquisition. This led to the fusing together of two or more banking entities through organisational restructuring that bred new banking outfits in Nigeria. To a large extent the book has X-rayed the processes and procedures for merger and acquisition on one hand and the resulting positive impacts on the Nigerian economy. The book is able to highlight the synergistic derivatives in pooling both financial and human capital together. In its quest to strike a balance the book equally identify the challenges emanating from in banking industry in Nigeria.

Author: Hussein Abdou
Publisher:
ISBN:
Category :
Languages : en
Pages : 23

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This paper examines the impact of Mergers and Acquisitions (M&A) on the financial performance of the Nigerian market after consolidation. We use data from all Nigerian banks that survived the consolidation between 2001 and 2009. Logistic regression models are structured to determine the influence of M&A activities on the financial performance of the Nigerian market. Also, we critically evaluate our findings by shedding the light on the lessons other developing nations can learn from the Nigerian market. Our results show that M&A have a positive influence on the financial performance of the Nigerian market. Still, M&A are not enough to achieve the wider objectives of banking sector reform. Towards this end, corporate governance reform must take place vis-à-vis consolidation exercises especially when these M&A are regulatory based rather than market based. Our investigation uses a novel approach by comparing pre- and post-M&A results performance of merged banks as well as comparing these results with non-merged banks. Finally, the paper puts the results in context of the wider reform context and considers the effectiveness of the M&A as a tool for banking sector reform in developing countries. Our investigation offers insights into the policy of banking consolidation which can be useful for policy makers in Nigeria and other similar economies.

Author: Heiko Hesse
Publisher: World Bank Publications
ISBN:
Category : Access to Finance
Languages : en
Pages : 36

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This paper uses unique bank-by-bank balance sheet and income statement information to investigate the intermediation efficiency in the Nigerian pre-consolidated banking sector during 2000-05. The author analyzes whether the Central Bank of Nigeria's policy of recent banking consolidation can be justified and rationalized by looking at the determinants of spreads. A spread decomposition and panel estimations show that the reform of the banking sector could be the first step to raise the intermediation efficiency of the Nigerian banking sector. The author finds that larger banks have enjoyed lower overhead costs, increased concentration in the banking sector has not been detrimental to the spreads, both increased holdings of liquidity and capital might have led to lower spreads in 2005, and a stable macroeconomic environment is conducive to a more efficient channeling of savings to productive investments.

Author: Rami Saleh
Publisher: GRIN Verlag
ISBN: 3656426880
Category : Business & Economics
Languages : en
Pages : 97

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Doctoral Thesis / Dissertation from the year 2009 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: A, , language: English, abstract: A study of the impact of mergers and acquisitions on the economic profitability among Banks in Lebanon

Author: Chuma Emmanuel Okafor
Publisher:
ISBN:
Category :
Languages : en
Pages :

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In an attempt to correct economic shortfalls, authorities in Nigeria deployed consolidation as the main policy instrument in the 2004-2006 reform of the banking industry. The Central Bank of Nigeria drew lessons from similar challenges faced by Malaysian and Indonesian authorities. Nigerian banks were given an 18 month window, to achieve an increased minimum capital base of N25 billion. To survive, banks could either raise the new requirements on their own or engage in mergers or acquisitions. The process of consolidation resulted in the reduction of banks from 89 to 24 and the emergence of three categories of banks namely: Stand alone, Common ownership, and Common interest banks. Primarily, this study examines change management practices of senior bank managers directly involved in implementing consolidation in Nigeria, and the impact of consolidation on credit availability to the private sector. Aggregate secondary data on the Nigerian banking industry from 2001-2009 were analysed and used to inform in-depth semi-structured interviews with thirteen senior bank managers and a respected independent financial analyst. Mixed methods were used to conduct further analysis. A conceptual framework was developed through an extension of Pettigrew's 1988 model, while a modified Berger et al. 1998 model was deployed to test credit availability. Findings indicate that most aspects of organisational change were successful, but a lot more needs to be done to improve cultural integration and employee motivation. The successes achieved by Nigerian banks, resulted in higher levels of credit being made available to the private sector. There is, however, scope for further improvement to be made. For example, senior bank managers should deploy a more holistic approach to planned change, and there should be an improved collaborative approach between the government and private sector which could help enhance alternative credit delivery channels such as micro finance firms, venture capitalists and business angels.

Author: Newman Enyioko
Publisher:
ISBN:
Category :
Languages : en
Pages : 34

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Book Description
The Nigerian banking sector was highly oligopolistic with remarkable features of market concentration and leadership. The CBN reforms to consolidate the banking sector through drastic increase to N25 billion as minimum capital base has led to a remarkable reduction in number of banks changed their mode of operation and their contribution to the economy. This study through review of literature and data analysis explores the profound effects of consolidation/mergers on bank recapitalization: issues and challenges in the Nigeria banking industry and found that, the CBN decision has changed the market structure of the banking sector, increased the efficiency and reliability of the banks, created opportunities for financial institutions and market participants, and raised their intermediation potentials. It also became evident that for such strategy to be effective, Central Bank of Nigeria needs to make banks recapitalization a continuous exercise at interval of 5-10 years to catch up with inflation and happenings in other parts of the world. It is equally important to establishing branches by mega banks in the rural areas of the country so as to ensure adequate access to credit facilities and other services.

Author: Seth Apati
Publisher:
ISBN: 9780230317598
Category : Banks and banking
Languages : en
Pages : 224

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Book Description
This is the first comprehensive book on the politics and economics of financial sector consolidation in an emerging market in West Africa. It draws on the author's twenty years experience working with multinationals in this oil-rich zone, to address key issues and examine banking reform in one of the world's fastest-growing economies. With over $400 billion looted from the porous banking sector of Africa's oil-rich giant, Nigeria, banking sector reform is a key priority for the Central Bank and the newly-elected civilian regime, to attract foreign investors. However, several vested institutional and political interests make the reforms a herculean and near impossible task. After a hastily-designed economic policy and a banking industry consolidation which reduced the number of banks from 89 to 25 in 2 years, the regulators discovered that the quest for size reduction had created more problems for the banks. Was the consolidation successful? Did it impact positivelyon Nigeria's economic reform programme? And how did the US, the IMF and the World Bank contribute to the outcome? This book presents an almost minute-by-minute chronicle of the politics and intrigues, from a key boardroom participant who was actively involved in the restructuring of the Nigerian banking industry. It examines the corruption, regulatory challenge, and financial sector reforms in the world's largest black economy.Giving avivid account of how the banking sector in Nigeria prospered at the expense of the overall economy, the book traces the origins of the Nigerian banking reform, the dynamics of its banking sector, and future outlook of this emerging market - a country that aims to be one of the 20th largest economies in the world by 2020.