The Impact Of Financial Reforms On Commercial Banks Performance In Nigeria

ABSTRACT

The purpose of this study is to investigate the impact of financial reforms on performance of commercial banks in Nigeria. The study reviews the perspective of banking sector reforms from 1981 to 2012. The method of data analysis adopted in this study are descriptive statistics, multiple regression and correlation analysis. The study tested the hypothesis that interest rate, deposit rate, money supply and liquidity ratio have no significant effect on performance of the commercial bank, secondly that there is no significant relationship between financial reform and commercial bank performance. The data was gotten from the central bank of Nigeria statistical Bulletin. The empirical results confirm that eras of pursuits of financial reforms were characterized by improved incentives. Financial reform in the banking sector was observed to ha'ie a positive significant effect on the performance of commercial bank. We recommend that the Central bank of Nigeria (CBN) should set other poRcy measures aim at addressing all activities of the commercial banks operation.