ABSTRACT

The study focus on Effect of Bank Consolidation Management on Organizational Effectiveness (A study of selected deposit money banks in South East Nigeria). The specific objectives sought achieve in this study include to, examine how bank consolidation affected managerial role and commitment of deposit money banks in the South East Nigeria, ascertain the effect of bank re-capitalization on performance of deposit money banks in the South East Nigeria, examine how bank increase in capital base affected worker job retention and satisfaction in deposit money banks in the South East Nigeria, ascertain how bank increase in shareholder’s funds affected shareholders’ wealth value creation in deposit money banks in the South East Nigeria and determine the challenges of bank consolidation in  deposit money banks in the South East Nigeria. A survey research design was adopted for the study. The study had a population size of 3000, out of which a sample size of 353 was realized using Taro Yamane’s formula at 5% error tolerance and 95% level of confidence. Instrument used for data collection was primarily questionnaire and interview. Out of 353 copies of the questionnaire that were distributed, 312 copies were returned while 41 were not returned. The hypotheses were tested using Chi-Square and Z-test statistical tools. The findings indicate that Bank consolidation has significant effect on managerial role and commitment of deposit money banks in the South East Nigeria. Also, that there is significant effect of bank re-capitalization on performance of deposit money banks in the South East Nigeria. Again, that Bank increase in capital base has no significant effect on worker job retention and satisfaction in deposit money banks in the South East Nigeria. Bank increase in shareholder’s funds has no significant effect on shareholders’ wealth value creation in deposit money banks in the South East Nigeria and finally, that insider abuse and poor fiscal policies are not challenges of bank consolidation in deposit money banks in the South East Nigeria. The study recommended that banks should maintain strict compliance to standard, regulation and abide by dictates of corporate governance in order to minimize risk of bankruptcy.