RECAPITALIZATION AND THE DEVELOPMENT OF DEPOSIT MONEY BANKS IN NIGERIA

This study empirically examined the effect of recapitalization on the growth of deposit money banks in Nigeria. Specifically, it investigated the impact of liquidity, total deposits, and total bank assets on the growth of these banks. Secondary data were utilized, and the Ordinary Least Squares (OLS) multiple regression technique was employed to determine the relationships between the explanatory variables and bank growth. Findings reveal that total bank assets have a significant effect on the growth of deposit money banks, while both total deposits and liquidity positively influence growth. The study underscores the importance of recapitalization in strengthening the financial capacity of banks and enhancing sector stability. It recommends that the Central Bank of Nigeria (CBN) remain committed to enforcing statutory requirements and oversight to prevent distress and promote sustainable growth within the banking sector