Corporate Governance and Bank's Performance in Nigeria (post – Bank's Consolidation)
Year: 2025
Type: article
Abstract: The financial institution in Nigeria like other African country has beenstruggling with the epidemic of inadequate corporate governanceover the years what seem to be an exigency of integration betweenpolitical and economic pursue after forty seven years of politicalindependence. This has to do with what revolves round all the sectors of theeconomy – corporate governance. It deals with the complex set of therelationships between the corporation and its board of Directors,Management, Shareholders and other Stakeholders. In the recent years, theregulators and legislators have intensified their focus on how business is beenmanaged and run. This has led to creation of a template for new corporategovernance and ethical standard which is beneficial for both the stakeholdersand controllers. This study carried out some estimated models. Binary probitwas adopted to test the covariance matrix computed on structuredquestionnaire to bank’s clients and it was discovered that the variables suchas independence, reliance, and fairness helps in the effective performance ofbanks but the major significant ones in this consolidation period areaccountability and transparency of bank’s staff. Also, least square regressionanalysis was adopted to convey the relationship between bank deposits withbank credit. The est imation of the developed model was found that bankstotal credit was positively related but not significantly determinant factors ofbank’s performance, and bank deposit was found to be positively related tobank performance but was insignificant in Nigerian economy. Base on theresult therefore and view from bank’s clients, it was cleared that corporategovernance is needed for effective bank performance especially during theperiod of post consolidation in Nigeria. Hence, this study therefore summariesthe highlights: discuss the impact of corporate governance in all the 24Nigerian main stream banks. It is worthy of note that though corporategovernance has been the heart beat of stakeholders and regulatory body yetthe objective has not been fully achieved. The study recommend that, forbetter bank performance in Nigeria, banks should embrace the fiduciaryelement in financial services which include transparency, accountability,fairness, high ethical standard and they are to ensure that their topmanagement officials is independent. These will promote corporategovernance and leads to complete reliance of bank’s clients on them.
Author: Akingunola R.O, Adekunle Olusegun.A
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6930911935
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