Effect of Recapitalization on Banks’ Financial Performance in Nigeria

Abstract

Recapitalization of banks has been considered the way forward of ensuring developing countries bank compete with the outside world (developed countries). This study examines the effect of recapitalization on banks’ performance in Nigeria. Data were collected from audited financial report of the selected banks from 2000-2013. The analysis was carried out with the use of panel method. It finds out that there is negative relationship between banks performance and recapitalization. The study concluded that management needs to considered recapitalization as a way of ensuring optimal utilization and tax incentive for banks for the purpose of competing with outside world economy.