BANK CONSOLIDATION ON CAPITAL MARKET DEVELOPMENT: THE NIGERIAN STOCK EXCHANGE IN FOCUS

Chikezie Adanna Olachi

Abstract


This paper is aimed at assessing the capacity of the market to accommodate the consolidation on capital market growth and to evaluate the likely impact of bank consolidation on the operations of the Nigerian

stock Exchange. Consolidation of the financial sector is not a new phase in Nigeria. It has been occurring right from conception till birth of the banking industry. It is however evident that a roadmap was constructed

through setting up of hypothesis designed to examine the degree of flexibility of bank consolidation and capital market development. Decisions were based on the results of the findings and reason for such decisions provided. In Conclusion there exists a strong positive relationship between banking consolidation and capital market development in Nigeria. Therefore, all the regulatory authorities involved have much to

carter for as the expected booming activities of both sectors (bank and capital market) may go beyond the scope of their imagination and if not properly counteracted, will put the entire economy in a shamble. The major recommendation is that the regulatory authorities (SEC) should improve on their laxities through strengthening trade alert system via CSCS so as to pretect against the occurrence of share scam. On the part of the banking industry, more budgets to avoid the initial rush to the capital market for funds / loan placing.


Keywords


capital market, bank consolidation, regulatory Authorities and Security and Exchange Commission SEC

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