The Impact Of Recapitalization Policy On Financial Performance Of Nigerian Banks:- Okon, Amogu U.

ABSTRACT

This study examined the impact of recapitalization policy on the financial performance of deposit money banks in Nigeria. To evaluate this, the researcher adopted a survey method with questionnaires used to elicit information from bank staff who formed the respondents. The findings revealed that recapitalization as a policy has impacted positive virtually on all aspects of bank including reducing bank liabilities, bankruptcy, non-performing loans etc. Prominent among them is the restoration of customers' confidence. The merger and acquisition associated with recapitalization were more or less a forced or compelled one, though it significantly improved the performance and efficiency of the participant banks. In the light of this, the researcher sees the simultaneous consideration of all the items in the CAMEL acronym and undue interference from board members, political crisis, under capitalization and fraudulent practices (all of which contribute to nonperforming loans) as a necessity while proposing a reform. The continued undue interference of board members and the fraudulent practices of the banks' insiders should be totally arrested and terminated if we expect efficient performance in the banking.