Assessment of the Impact of Universal Banking on Bank Performance in Nigeria

Abstract

This paper assessed the impact of universal banking on the performance of the banking sector in Nigeria within the period 2001-2010. The main objective of this paper was to determine the extent to which universal banking affected the performance of banks in Nigeria within the period of study. The paper employed survey research technique and regression analysis to ascertain the impact of universal banking on the performance of the banking sector in Nigeria within the study period. The study population was made up of the 24 banks in operation during the period. Two (2) respondents were selected from each of the banks making a sample size of 48. The sample size was determined using purposive sampling technique.  Evidence from the study showed that universal banking enhanced real sector funding, reduction in bank failure and enhanced performance of banks in Nigeria during the study period. The paper concluded that universal banking was a major innovation in the banking sector in Nigeria. Though the system had many prospects, it was also confronted with many challenges. The paper recommended, among others, that banking reforms should be predicated on needs and sufficient time should be allowed for adjustments and workability.

Keywords: Universal, Banking, Bank, Performance.