Bank Capitalisation, Management and Performance : A case study of Nigerian Banking Industry (Commerical Bank 1986-2006)

In this study, we have specified an empirical framework to investigate bank capitalization/consolidation, management and performance. Based on the results of the theoretical and empirical analysis, bank loan, bank deposit, bank asset, bank liquidity, operating expenses, loan interest-deposit interest rates gap, inflation rate, interest rate, exchange rate, market share, unfavorable environment affects the performance of bank management. Capital adequacy ratios, efficiency/Quality of management and Liquidity ratios are also very crucial factors affecting bank capitalization and performance. Therefore, in order to improve performance, management of banks should focus on maintaining sizeable amounts of reserves which can be ploughed back into the business, improving the quality of their credit portfolios, diversifying product and services, beefing up the capital in line with regulatory authorities and best practices. This cannot be possible without employing skillful, experience and efficient team of management that are visionary and focus.