The Impact of Financial Sector Reforms on Banks Performance in Nigeria

The International Journal of Business and Finance Research, Vol. 5, No. 1, pp. 53-63, 2011

11 Pages Posted: 3 Jul 2011

See all articles by Olubayo Thomas Olajide

Olubayo Thomas Olajide

Lagos State University

Taiwo Asaolu

Obafemi Awolowo University

Charles Ayodele Jegede

Lagos State University

Date Written: 2011

Abstract

This study examined the impact of financial reforms on banks’ organizational performance in Nigeria between 1995 and 2004. It specifically determined the effects of policies of interest rates deregulation, exchange rate reforms and bank recapitalization on banks performance, and analyzed how banks internal characteristics and industry structure affect the performance of Nigerian banks. The study utilized panel data econometrics in a pooled regression, where time-series and cross-sectional observations were combined and estimated. The result of econometric panel regression analysis confirmed that the effects of government policy reforms, bank specific characteristics and industry structure has mixed effects on banks profitability level and net interest margin of Nigerian banks. Bank specific characteristics appear to have significant positive influence on bank’s profitability and efficiency level, while industry stricture variables appeared not to have contributed meaningfully to the profitability and efficiency performance of banks in Nigeria.

Keywords: Nigeria, Financial Reforms, Banks Performance

JEL Classification: F2, G21, E1

Suggested Citation

Olajide, Olubayo Thomas and Asaolu, Taiwo and Jegede, Charles Ayodele, The Impact of Financial Sector Reforms on Banks Performance in Nigeria (2011). The International Journal of Business and Finance Research, Vol. 5, No. 1, pp. 53-63, 2011. Available at SSRN: https://ssrn.com/abstract=1876052

Olubayo Thomas Olajide (Contact Author)

Lagos State University ( email )

Lagos/bagagry express road lagos nigeria.
PMB 0001 LASU OJO Lagos Nigeria
Lagos, 234
Nigeria

Taiwo Asaolu

Obafemi Awolowo University ( email )

P.M.B 13
Ile Ife
Ile-Ife, Osun 230001
Nigeria

Charles Ayodele Jegede

Lagos State University ( email )

Lagos/bagagry express road lagos nigeria.
PMB 0001 LASU OJO Lagos Nigeria
Lagos, 234
Nigeria

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