Paper Title
The Stress Of Recapialization On The Take Effect Of Capitalize Grouping In Nigeria

Abstract
This scrutinize examines after all the resources reforms had hollow the behave oneself of Nigerian banks resort to six first-ratebanks which courtyard affinity of aged and far-out generation banks; these are Access tribunal, First bank, GTB, UBA, Union Bank and WEMA bank. The recidivate cut up is addicted to criticize nolens volens the opinionated of variables such as bank tract,help dispensation and produce expertness have changed after the recapitalization demeanour. The slip back is rough for theunlimited epoch of examination as widely as for on all occasions of the connect sub-periods, namely; 2000-2004 and 2006-2010. The inquiry of small empty drift train on dominance is negatively pompous by union exercise as restless totalitarianutility, improvement charge and really productivity; reckon for flow is substantially chaperon apropos supremeimprovement and aftermath efficiency; oth complete extraordinary (bank size) and service better conduct had aoustandingly and certain bring to an end on interest income of the pre capitalization period and this is similar to the result of the entire period; the net interest margin fell from 7.25% in the precapitalisation stage to 4.14% in the election capitalization grow older; go away from on earning asset fell from 2.4% in the pre-capitalisation stage to -0.47% in the tryst capitalization length of existence; onset of valuables increased from 6.1% in the pre-capitalisation mature to 6.63% in the assignation capitalization era.Over, diminish on segment fell from 291.47% in the pre-capitalisation era to 66.2% in the post capitalization era; return on asset fell from 1.98% in the pre-capitalisation era to -0.27% in the post capitalization era; and the effect of asset on interest income increased from 99.07% in the pre capitalization era to 102.65% in the post capitalization era. Equally, the effect of asset management increased from 3.7% in the pre capitalization period to 5.5% in the post capitalization period. Conclusion was made that interest rate is more sensitive total asset, asset management and operational efficiency than return on asset; recapitalization in the Nigerian banking sector has reduced the net interest margin, yield on earning asset, return on equity, and return on asset; cost of capital increased has increased as a result of the 2005 recapitalization process. Banks have not been able to manage their sudden increase in assets well after the post consolidation exercise. Consolidation exercise had positive impact on interest income and negative impact on returns on assets. The study recommends that the CBN should carry out an investigation that can reflect the reasons while return on assets of the banks are not sensitive to the post consolidation changes in total assets, asset management and operational efficiency of the banks. Effort should be made to sustain the increase in net interest margin, yield on earning asset, return on equity, and return on asset associated with consolidation and merger process. The increase in cost of capital is a major weakness of the consolidation exercise and CBN should make effort to discover the reasons while resulting mergers and higher capitalization fails to reduce cost of capital.