GASPRO International Journal of Eminent Scholars

ABSTRACT

This study sought to assess the impact of amalgamation of commercial banks in Nigeria. It is obvious that commercial banks are the cornerstone of the economy of a country as they play a crucial role in propelling the entire economy. The sector is also seen by its essential role of intermediation, which involves resource mobilisation and allocation in an economy and its position as the most important segment of the financial system in developing economies, accounting for the bulk of the financial transactions and assets. The study concluded that while the amalgamation of commercial banks in Nigeria may be good for the economy and for the growth of the industry, the market gap that is left could cause economic problems. Banks mobilise and assist in the efficient distribution of national savings by mediating between surplus and deficit savings units within an economy, thereby boosting the volume of investments and, thus, national output. Commercial banks are vital agents in the development process and hold a central role in the country's financial structure. However, the study has outlined the merits and demerits of amalgamation in the banking industry with reference to the customer's views in Nigeria. One of the recommendations made was that banks should encourage capital formation (investment) to foster economic growth through financial intermediation.

KEYWORDS: Amalgamation, Commercial Banks and Nigeria