Effect Of Shareholders’ Fund On The Performance Of Commercial Banks In Nigeria (A Study Of Guaranty Trust Bank Plc):- Smart Winnie T.

ABSTRACT

Almost every aspect of banicing is either directly or indirectly influenced by the availability of capital. One ofthe key factors to be considered when the safety and soundness ofa particular bank is assessed is capital. An adequate capital base serves as a safety net for a variety ofrisks to which an institution is exposed in the course of its business. Capital absorbs possible losses and thus provides a basis for maintaining depositor confidence in a bank (Greuning and Bratanovic, 2009). Eke and Ekwe (2016) noted that capital represents a cushion against the unforeseen, forms the safety net ofsoft landing that allows it to remain solvent and continue operation despite unexpected macroeconomic or institutional disturbances.