Bank Performance,Financial Crisis,and Economic Growth in Nigeria

Bank Performance,Financial Crisis,and Economic Growth in Nigeria

Author by Dr. Folajimi Festus Adegbie

Language: English


NOUN Journal of Management and International Development.Journal of School of Management Sciences,National Open University of Nigeria.August,2012 Volume 1 Number 1 pp.47-62 From the evolution of the banking in Nigeria ,the industry recorded astronomical growth in the number of institutions,and the effects of this phenomenal growth and expansion in their activities has been bitter-sweet,resulting in successes and failures of banks.The industry has been experiencing financial crisis because of distress.It is evident that as distressed banks were liquidated,depositors lost their deposits,investors lost their various investments,stakeholders lost their holdings and other sectors of the economy were badly affected economically.The objective is to examine the relationship between Bank performance and Gross Domestic Product with a view to determining the co-movement of the two as to the effect of financial crisis. The paper use primary and secondary data for the field work. Multivariance Analysis of Variance (MANOVA), Multiple Regression Analysis and Growth change model were adopted for the computation of the results and the findings show that change in economic performance indices will affect the performance of banks and GDP; crisis in the banking industry will have reciprocal effect on GDP, and there is a co-movement and constant relationship between bank performance and GDP. The paper recommend among others that the industry together with each bank should embark on industry transformation by reinventing the banking industry, regenerate strategy and go away from re-engineering processes.

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