Effects of Bank Consolidation on Commercial Borrower Welfare in Niger Delta Region

Abstract

Effects of bank consolidation on commercial borrower welfare in in Nigeria’s Niger Delta region were studied. Questionnaire and interview instruments were employed to collect data, which were subjected to analysis. Results showed that bank consolidation exercise had significant negative effects on commercial borrower welfare in Nigeria’s
Niger Delta region (Xc2 = 45.56 > Xt2 = 21.0 at 12 degrees of freedom and 0.05 level of significance) in areas of worker job satisfaction, attractive interest rates among others, contrary to the general view that the larger the size of banks, its ability to lend increases and less interest rates would apply. The study recommended conscious attempt by commercial bank managers in the region to lower the cost of borrowing.