Capitalization Policy and Service Delivery in the Nigerian Banking Sector

The study reported in this paper examines the relationship between capitalization policy and service delivery in the Nigerian banking sector. The problem investigated by the study revolves around the question of whether or not capitalized banks meet their current challenges. The study targeted the component number of fifteen out of the twenty-five consolidated banks. Data for the study where generated from both primary and secondary sources. The instrument of primary data utilized is the questionnaire while secondary sources employed the use of published and unpublished materials. Data were analyzed qualitatively and quantitatively using descriptive statistics like tables, chi-square (x²) test to test the hypotheses on the relationship between capitalization policy and service delivery. The study revealed among other things that capitalization policy is a welcome venture, it has the greatest benefit of reinforcement of public confidence, it created the problem of unemployment, it enhances management of depositor’s funds and it helps banks on capital project financing. It was recommended that capital base should be reviewed upward, staff welfare should be taken into consideration and all stakeholders should be involved in decision making.