BANK CONSOLIDATION AND INTEREST RATE DEREGULATION EFFECTS ON THE LEVEL OF COMPETITION IN THE NIGERIAN BANKING INDUSTRY
ABSTRACT
This study was to determine the effect of interest rate deregulation and consolidation on the level of competition in the Nigerian banking industry. The study employed a multiple Ordinary Least Square regression (OLS) to test the effect of the independent variable on the dependent variable, before which a pre-test for stationary was employed.
After establishing the fact from the results that there is a long-run relationship. The study confirms that a more concentrated industry with few banks resulting from consolidation via merger and acquisition does bring about the economics of scale, innovation, and heightened competition in the banking industry.
After establishing the fact from the results that there is a long-run relationship. The study confirms that a more concentrated industry with few banks resulting from consolidation via merger and acquisition does bring about the economics of scale, innovation, and heightened competition in the banking industry.