AN INVESTIGATION OF THE CONTRIBUTIONS OF MICRO-FINANCE BANKING INSTITUTION TO CAPITAL FORMATION IN NIGERIA (1992-2010)
ABSTRACT
The goal of this study is to evaluate the recapitalization policy and the performance of the banks in Nigeria, as well as to learn about the history of the policy, how it has fared over time, and the advantages of this recapitalization for Nigerian banks. Data were obtained from secondary sources, such as online sources, journals, and publications of the central bank of Nigeria’s statistical bulletin.The key findings show that recapitalization policy has a significant impact on bank performance in Nigeria. These significant effects include improving the ability to finance larger projects, increasing financial depth, attracting more foreign investment, fostering public confidence, investing in the real economy, increasing shareholder returns, stabilizing the financial system, etc. All of these important effects are due to the growth in the capital base of banks over time, the mobilization of savings, and real gross domestic products.
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