The African Financial Review July-August 2014 | Page 21

Table 1. Analysis of rate of response by respondents
Questionnaire
Returned

Respondent

Percentages

80

80%

Returned but not properly filled

12

12%

Total distributed

100

100%

Not returned

8

8%

Source: Field Survey (2012)

2. Ho: Bank recapitalization has no significant effect on the
Nigerian economy H1: Bank recapitalization has a significant
effect on the Nigerian economy

Results and discussion

A total of 100 questionnaires were distributed. After the questions
were collected from the respondents, they were properly screened
and sorted out. The details of the questionnaire administered
and returned are shown in Table 1, which shows that 100
questionnaires were distributed, out of which 80 were properly
filled and returned which represents (80%), 12 questionnaires
were returned either not properly filled or unfilled which
represents 12% and 8 questionnaires were not returned at all by
the respondents which represents 8%.

Hypotheses testing

Hypothesis 1
Ho: There is no impact of bank reforms on the performance of
banks in Nigeria H1: There is an impact of bank reforms on the
performance of banks in Nigeria. In table 2, the F-calculated is
8.504 while F-tabulated is 6.26 at 5% level of significance and
degree of freedom of 4. Since the calculated value of F Statistics
is greater than the tabulated value, we reject the null hypothesis

The analysis of data obtained from
questionnaire revealed that there is an impact
of bank reforms on the performance of banks
in Nigeria. Such impact can be seen by way
of increased profitability, stronger capital
base, greater operational efficiency, and thus
guaranteeing an efficient and sound financial
system.
which states that there is no impact of bank reforms on the
performance of banks in Nigeria and concluding based on the
result that there is an impact of bank reforms on the performance
of banks in Nigeria.
Hypothesis 2
Ho: Bank recapitalization has no effect on the Nigerian economy
H1: Bank recapitalization has an effect on the Nigerian economy
In table 3, the F calculated is 7.325 while F tabulated is 6.26 at
5% level of significance and degree of freedom of 4. Since the
calculated value of F Statistics is greater than the tabulated value,
we reject the null hypothesis and accept the alternative hypothesis
and conclude based on the result that bank recapitalization has
effect on the Nigerian economy.

Discussion of findings

Testing hypothesis one, it was found out that the calculated value
of F-Stats which was obtained from the SPSS data was greater
than the tabulated value hence, we reject the null hypothesis and
accept the alternative, thus concluding that there is an impact
of bank reforms on the performance of banks in Nigeria. In
testing hypothesis two, it was found out that the calculated
value of F-stats was greater than the tabulated value and so the
null hypothesis is rejected and the alternative accepted and we
therefore conclude that bank recapitalization has effect on the
Nigerian economy.

The analysis of data obtained from questionnaire
also revealed that there is an impact of bank reforms on the
performance of banks in Nigeria. Such impact can be seen by way
of increased profitability, stronger capital base, greater operational
efficiency, and thus guaranteeing an efficient and sound financial
system. It was also observed that by way of accelerating zero
tolerance for inadequate corporate governance and ensuring
greater transparency, the public sector confidence has been reinstated in the sector as clearly stated by the bank respondents.
The entities resulting from the consolidation of the Nigerian
financial sector became bigger (in terms of size, capability and
financial might) and thus, are able to compete more aggressively in
the market. Also, because the number of banks drastically reduced,
more opportunities became available to the evolved banking
groups. However, a major consequence of the consolidation of
the banking sector will be an increased effort by banks to project
them within the market place. For this to be effective, it must be
based on more than just a need to put out information on the
new entity. Moreover, the study reveals that despite the reforms,
post consolidation challenges like challenges of increased return
on investment and unhealthy competition and rivalry still exist.

Conclusion

The study explored bank reforms and performance of banks
in Nigeria. This has become necessary in the face of evolving
developments in the banking industry in Nigeria especially with
the exchange of baton by the Central Bank of Nigeria (CBN)
govern