Bank Consolidation and Deregulation Effects on the Level of Competition in the Nigerian Banking Industry.

Authors

  • DONALD IKENNA OFOEGBU UNIVERSITY OF IBADAN BABCOCK UNIVERSITY,, NIGERIA
  • Iyeh Titilope Adeyele University of Ibadan

Keywords:

Bank Competition, Interest Rate Spread, Deregulation, Consolidation, Regression.

Abstract

The study was to determine the effect of deregulation and consolidation on the level of competition in the Nigerian banking industry. The study employed a Multiple OLS Regression analysis to test the effect of the independent variables on the dependent variable, before which a pre-test for Stationarity was employed (ADF test) and a Johenson Cointegration Test. Having established the fact from the results that there exists a long run relationship, the study confirms the fact that a more concentrated industry with few banks resulting from consolidation via merger and acquisition, does bring about economics of scale, innovation and heighten competition in the banking industry. A similar effect was also noticed in the deregulation/liberalization impact as a more liberalized (or deregulated) financial system will bring about heighten competition, positive interest rates, and higher savings; though it was found to be insignificant.

Author Biographies

DONALD IKENNA OFOEGBU, UNIVERSITY OF IBADAN BABCOCK UNIVERSITY,, NIGERIA

Department of Economics and Research Fellow

Iyeh Titilope Adeyele, University of Ibadan

Economics Department, Doctoral student and Researcher fellow

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Published

2013-01-01

How to Cite

OFOEGBU, D. I., & Adeyele, I. T. (2013). Bank Consolidation and Deregulation Effects on the Level of Competition in the Nigerian Banking Industry. International Journal of Economic Practices and Theories, 3(1), 37-49. Retrieved from http://ijept.eu/index.php/ijept/article/view/Bank_Consolidation_and_Deregulation_Effects_on_the_Level_of_Co

Issue

Vol. 3 No. 1 (2013)

Section

Articles

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