Impact Of Bank Consolidation On Nigeria Economy Growth

The study investigates the impact of bank consolidation on Nigeria economy from 1986 to 2010 It adopts Gross Domestic Product (GDP) as a measure of economic growth and Interest Rate Margin (IRM), Credit to Private Sector (CPS), Savings (SAV) and Inflation rate  (INF) as measure of bank consolidation.. The econometric techniques of Augmented Dickey-Fuller (ADF), Unit Root test, Johansen Co-integration test and Error Correction Mechanism (ECM) were used. The empirical result shows the presence of significant relationship among the variables. The findings however suggest that bank consolidation within the period under review has no significant impacted on the economy even though bank consolidation  remains  one of the ways to improve the banking sector for financial stability and sustainable development. The study recommends that the regulatory and supervisory framework should be further strengthened and healthy competition should be promoted while further reforms and consolidation that can further efficiency of the banking industry should be embarked on.