Bank Reforms and Deposit Money Banks Performance: Evidence from Nigeria

Abstract

This study investigates the impact of banking reforms on the performance of Deposit Money Banks in Nigeria spanning from 1995 to 2012. The main purpose of this study was to ascertain the effect of banking reforms on bank performances in Nigeria. The required data for this study was obtained from secondary sources which include publications of Central Bank of Nigeria and Federal office of statistics. This study covers all Deposit Money Banks in Nigeria. Test for Equality of means method was adopted, while E-views 7.1 is the computable software that was used to analyze the data. Thus, the study reveals that Return on Equity and banks profitability have a significant difference in the pre and post bank reform era while Return on Assets shows that there is no significant difference in the pre and post banking reform era in Nigeria. Thus, the study reached a consensus that the improved level of Deposit Money Bank profitability is associated to the various bank reforms in Nigeria.  Therefore, we recommend that Banks should improve their total asset turnover and diversify in such way that they can generate more income on their assets.

Keywords: Bank Reforms, Return on Assets, Return on Equity, Banks Performance