ASSESSMENT OF THE EFFECT OF ECONOMIC RECESSION ON FINANCIAL PERFORMANCE OF BANKS IN NIGERIA

ABSTRACT

This research work captioned “Assessment of the effect of economic recession on financial performance of banks in Nigeria” was orchestrated with an innate intent to divulge the intriguing, traumatic issues and economic woes that have hitherto accosted the financial performance of banks in Nigeria as a result of the economic recession. Using six Banks including Guarantee Trust Bank, Zenith Bank, Union Bank, First Bank, UBA, and Access Bank Plc. Birnin Kebbi as sample area for the study, the researcher came to decipher various monumental issues that were constituents and catalyst of the economic recession like inflation, reduction in government revenue, devaluation of the Naira, incongruous governmental policies, all resulting in massive retrenchment and unemployment, low bank revenue, reduction in salaries and other emoluments. This research thrives on the macadamized surface of evaluating and assessing the degree of impact the economic recession have made on financial performance of banks in Nigeria. Questions like “how has the devaluation of the Naira positioned the Nigerian economy” were set to ascertain responses. Secondary data were conglomerated to ascertain facts, it was discovered that banks had to embark on aggressive deposit mobilization just to be able to grope with the economic recession. It is therefore recommended that government should brace up aggressively in its altercation against the economic recession by combating inflation and promulgating efficient fiscal and monetary policies and giving back value to the Naira.

 

 

LIST OF TABLES

4.2.1 Real GDP of the industrial sector and Annual Market Capitalization (2005-2018)       -          -        -        -        -        -        -        -        -        -        40

4.2.2 Real GDP and Value of Traded Securities of the industrial sector (2005-2018)   -        -          -        -        -        -        -        -        -        -        -        41

4.2.3 Debt transaction on the Nigeria Stock Exchange and capital market indices (2005- 2018)          -        -        -        -        -        -        -        -        -        42

4.2.4 Average manufacturing capacity utilization rate, capital market indices and Inflation rate. (2005-2018)         -        -        -        -        -        -        -        43

4.3.1  The Linear Regression Result For Hypothesis One       -        -        -        46

4.3.2  The Linear Regression Result For Hypothesis Two      -        -        -        48

 

 

 

 

TABLE OF CONTENT

Title Page    -        -        -        -        -        -        -        -        -        i

Approval Page     -        -        -        -        -        -        -        -        ii

Dedication  -        -        -        -        -        -        -        -        -        iii

Acknowledgement         -        -        -        -        -        -        -        -        iv

Abstract      -        -        -        -        -        -        -        -        -        v

List of Tables       -        -        -        -        -        -        -        -        vi

Table of Content  -        -        -        -        -        -        -        -        vii

 

CHAPTER ONE

INTRODUTION

1.1     Background of the Study        -        -        -        -        -        -        1

1.2     Statement of the problem-       -        -        -        -        -        2

1.3     Research Questions       -        -        -        -        -        -        3

1.4     Objectives of the Study  -        -        -        -        -        -        3

1.5     Significance of the study         -        -        -        -        -        -        3

1.6     Scope of the Study                  -        -        -        -        -        -        5

1.7     Summary of Chapters   -        -        -        -        -        -        5

 

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1     Introduction         -        -        -        -        -        -        -        -        6

2.2     Conceptual Definitions  -        -        -        -        -        -        6

2.2.1  Concept of economic meltdown /recession -        -        -        6

2.2.2  The Global economic crisis and financial market           -        -        10

2.2.3  Causes of Global economic crisis      -        -        -        -        14

2.2.4  Impact of economic recession on the banking sector     -        17

2.3     history of the research area     -        -        -        -        -        21

2.4     Similar in Nigeria -        -        -        -        -        -        -        26

2.5     Similar studies in other countries                -        -        -        27

2.6     Hypothesis Development                  -        -        -        -        -        33

2.7     Conclusion -        -        -        -        -        -        -        -        34

 

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Introduction                   -        -        -        -        -        -        -        35

3.2     Research Design   -        -        -        -        -        -        -        35

3.3     Research Population      -        -        -        -        -        -        35

3.4     Sample and Sampling techniques     -        -        -        -        35

3.5     Sources of Data    collection    -        -        -        -        -        36

3.6     Instruments of Data Collection                   -        -        -        -        36

3.7     Method of data analysis                    -        -        -        -        -        36

 

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1     Introduction                   -        -        -        -        -        -        -        38

4.2     Data Presentation and analysis                  -        -        -        -        38

4.3     Summary of Findings              -        -        -        -        -        42

4.4     Conclusion           -        -        -        -        -        -        -        46

 

CHAPTER FIVE

CONCLUSION

5.1     Summary    -        -        -        -        -        -        -        -        48

5.2     Conclusion -        -        -        -        -        -        -        -        49

5.3     Recommendation -        -        -        -        -        -        -        49

5.4     Suggestion for future Study              -        -        -        -        50

References            -        -        -        -        -        -        -        52

          Appendix   -        -        -        -        -        -        -        -        54