Sep 2026· World Journal of Entrepreneurial Development Studies· 0 citations
Abstract
This study investigates the effect of bank recapitalization on the financial stability of Nigerian
deposit money banks between 2004 and 2024. Using an ex-post facto research design and
balanced panel data from ten banks, the study employs fixed-effects regression with cluster-robust
errors, complemented by random-effects diagnostics and difference-GMM estimation. Capital
adequacy is found to exert a positive and significant influence on financial stability, while nonperforming loans and bank size negatively affect performance. Recapitalization phases do not
independently predict stability once bank-specific fundamentals are accounted for, suggesting that
reforms strengthen stability indirectly through improved capital buffers rather than through the
recapitalization event itself. The findings highlight the critical role of asset quality and prudent
capital management in sustaining bank resilience. The study contributes to policy discussions by
showing that recapitalization must be complemented with stronger supervisory enforcement and
risk-management practices to achieve lasting financial stability.
This article investigates the effect of recapitalization on the performance of deposit banks in
Nigeria, particularly in the context of recent macroeconomic challenges and the Central Bank of
Nigeria new proposed recapitalization policy slated for implementation beginning in 2025.
Despite previous consolidation reforms...
Ime T. Akpan· INTERNATIONAL JOURNAL OF SOC...· 0 citations
This study investigated the impact of banks’ liquidity on banks’ stability in Nigeria for the period
2004–2023. The ex-post facto research design was adopted, utilizing secondary data sourced from
the annual financial reports of selected banks, the Nigeria Deposit Insurance Corporation (NDIC),
and the Central Bank of N...
Osaruyi Jeffrey Erhabor· World Journal of Finance and...· 1 citation
This study investigates how prudential regulatory instruments introduced by the National Bank of Ethiopia (NBE) influence the profitability and liquidity of private commercial banks in Ethiopia. Using balanced panel data from seven private commercial banks covering the period 2014–2023, the study employs fixed-effects...
Purpose: This study empirically investigates the relationship between key bank characteristics—capital adequacy, asset quality, board independence, and liquidity—and the financial performance of Nigerian deposit money banks (DMBs), proxied by return on assets (ROA).
Methodology: The study employed an ex-post facto rese...
G. E. Okpanachi, D. O. Odobi, E. Negedu et al.· FUDMA Journal of Accounting...· 0 citations
This study examines the effects of income diversification on the stability of Vietnamese commercial banks, with particular attention to the roles of credit risk, profitability, and capital adequacy. Using panel data from 406 bank-year observations covering the period 2010–2024, the study employs the two-step system Gen...
Hai Van Tran, Lan Thi Tran· Journal of Risk and Financia...· 0 citations
The stability of commercial banks is essential to economic growth, yet rising non-performing loans (NPLs) continue to threaten the health of the banking sector. This study examined the effect of non-performing loans on the financial stability of thirteen quoted commercial banks in Nigeria over the period 2015–2024. Usi...
Glory Ngozi Chukwu, T. Muritala· The Journal of Innovations· 0 citations
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