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The need for recapitalization and consolidation of commercial banks as a strategy for attracting foreign investment

 Department:Banking and Finance  
 By:usericon verao123  

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Abstract
The need for re-capitalization and consolidation that banks have not played that expected role in the department of the economy because of their weak capital base and as such, the decision to raise the capital base of banks was with the aim of strengthening and consolidation of the banking system was the first phase of reforms designed to ensure a diversified strong and reliable banking sector which will ensure the safety of depositors money play achieve development roles in the Nigeria economy and also became competent and competitive. Through financial intervention, banks are supposed to facilitate capital formation and promote economic growth by operating in a safe and sound manner in the past, some financial institutions showed glaring inability to maintain an efficient flow of funds within the economic system. The sharp practices of some banks together with the unsoundness of others led to widespread financial sector distress and loss to depositors. Banking sector reform, the depositors in trust by populace are not only protected but that the public confidence was so vital to the mobilization of saving. This creating of a fair healthy and competitive banking environment and the protection of bank customers from any losses or other disruptions they losses or their translating business with banks. ...
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