This study investigated the Nigerian Banks’ Efficiency Performance. The period studied was 2005-2009.In addition to the above, the extent of the effect of the bank’s fixed assets, operating expenses and total deposit on their efficiency was investigated. The effect of the bank’s efficiency on their profitability was also examined. In recent years emphasis is now on using frontier analysis methods in measuring bank efficiency instead of using financial ratios .
In frontier analysis, the institutions that perform better relative to a particular standard are separated from those that perform poorly. Such separation is done either by applying a parametric or non parametric frontier analysis to firms within the financial services industry.This study employed the Non parametric Data Envelopment Analysis (DEA)under the assumptions of Constant return to scale (CRS),Variable Return to Scale (VRS) and Scale Efficiency(SE) to estimate the efficiency scores of the banks .A bank with a score of 1 is efficient, while a score below 1 means the bank is inefficient. The tests of the four hypotheses were carried out using Vector autoregressive Analysis (VAR). The findings of the study revealed that GTB was the most efficient bank and it has the least reduction in inputs (4.93%) needed to produce the same amount of output. Moreover it remained efficient throughout the years 2006-2009.Overall, the worst performers are Unity bank, Afribank and UBA. Also the banks did not achieve full efficiency under the CRS, VRS and SE in any of the five years. The findings on the hypothesis tested revealed that fixed assets have a negati ve relationship with efficiency, operating expenses has no long run relationship with the efficiency variable and total deposit does not affect efficiency. Lastly, efficiency has a positive significant relationship with profitability. This study therefore recommend that the banks that are not efficient should study the operations of GTB the best performer to see if could be adopted to improve their efficiency and the banks should moderate their use of inputs as they could have used fewer amount of inputs to achieve the same level of output. Finally, the acquisition of fixed assets should be reasonable. This is to prevent it from reaching a point where it will impact negatively on the bank’s efficiency.
Can't find what you are looking for?
Call (+234) 07030248044.
OTHER SIMILAR MBA-MSC-PGD Thesis research PROJECTS AND MATERIALS
ACCOUNTING INFORMATION, STOCK MARKET GROWTH AND THE NIGERIAN ECONOMY
Abstract Adequate accounting information is essential for the efficient functioning of capital markets and by extension economic growth of a nation. The development of stock market is dependent on th...Continue reading »
AN ASSESSMENT OF CORPORATE GOVERNANCE AND FIRM PERFORMANCE: EMPIRICAL EVIDENCE FROM SELECTED LISTED COMPANIES IN NIGERIA
CHAPTER ONE INTRODUCTION Background to the Study The subject of corporate governance has spurred research interests with respect to principal- agent relationship expropriation in recent times especi...Continue reading »
IMPACT OF AUTOMATED ACCOUNTING SYSTEM ON PAYROLL PREPARATION IN SOME SELECTED LARGE ORGANISATIONS
ABSTRACT This research project is aimed at studying the impact of automated accounting system on the payroll preparation in large organisations selected from both Lagos and Ota. In an attempt to stu...Continue reading »
AN EVALUATION OF SHARE PRICE DETERMINATION AND CORPORATE FIRM CHARACTERISTICS
ABSTRACT At the close of 2009 the total market value of 266 securities listed on the Nigerian Stock market dropped by 26.5% resulting mainly from share price losses. In effect the crux of this work w...Continue reading »
THE AUDIT EXPECTATION GAP IN NIGERIA
ABSTRACT The purpose of this study is to highlight factors contributing to the audit expectation gap in Nigeria. The audit expectation gap is the difference in perception between auditors and users o...Continue reading »
AN ANALYSIS OF THE EFFECTS OF SELECTED HUMAN RESOURCE MANAGEMENT PRACTICES ON THE CORPORATE PERFORMANCE OF GLAXOSMITHKLINE, AGBARA, OGUN STATE, NIGERIA
CHAPTER ONE GENERAL INTRODUCTION BACKGROUND OF THE STUDY Contemporary organizations are constantly confronting pressures to improve service and productivity. The precariousness of the external work...Continue reading »
What are looking for today?
THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE
65,820 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
50,062 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
44,471 people found this useful
THE EFFECT OF TREASURY SINGLE ACCOUNT ON THE ECONOMY OF NIGERIA
43,127 people found this useful
IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR
42,930 people found this useful
CAUSES AND EFFECTS OF COMMUNICATION BREAKDOWN IN AN ORGANIZATION (A case study of champions’ brewe...
41,200 people found this useful