Evaluation of the Effect of Commercial Bank Consolidation on Economic Growth (Evidence from Nigeria, 2006- 2015)

This study evaluated the effect of bank consolidation on economic growth of Nigeria between the periods of 2006-2015. Secondary data were sourced from the Central Bank of Nigeria statistical bulletin and the NDIC Annual Reports between the period of 2006 and 2015. Data was analyzed using the Ordinary Least Square (OLS) multiple regression technique with the aid of the SPSS statistical software to test the hypotheses formulated. The study revealed that, Commercial Bank Deposit has a significant positive relationship with Real Gross Domestic product (GDP); while Commercial Bank Asset has no significant relationship with Real GDP. The study recommends that, government should put adequate effort to sustain commercial banks consolidation policy to make fund available for the overall well-being of the economy. The authors recommend the Central Bank of Nigeria and Bank Management to develop clear and applicable credit policies to address issues concerning risk acceptance criteria, loan approval limits, collateral securities, loan reviews and machinery of debt recovery.