IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 2 NO. 2 2016

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The Camel Rating Based Assessment of the Performance of Nigerian Banks in the Post Consolidation Era (2005-2014)

Oyedele Oloruntoba Stephen, Emerah Ajevata Apollos, Adegoke.J.E

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Abstract

CAMEL rating has become a concise and indispensable tool for examiners and regulators. Its purpose is to provide an accurate and consistent evaluation of a bank’s financial condition and operations in the areas such as capital, asset quality, management, earning ability and liquidity. This study examined the performance of selected Nigerian Deposit Money banks in the post consolidation era, using the CAMEL rating system. Primary data were obtained through the administration of structured questionnaire on respondents in order to assess their opinions about the performance of selected Nigerian deposit money banks in the post consolidation era while secondary data were also sourced from the annual reports of these banks. CAMEL rating system was used to analyze relationship between the study variables. The study concluded that mergers and acquisitions have significant impact on performance of the emerging banks and that the policies have led to an increase returns on investment to the Nigerian banking system with greater financial intermediation. Based on these findings, the study recommended that bank regulatory agents should emphasis monitoring of such bank performance variables as capital adequacy, liquidity, bank deposit and growth rate so as to ensure future sustainable gains.

keywords:

Camel Rating, Assessment, Performance, Banks, Post Consolidation.

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