CONSOLIDATION IN THE BANKING INDUSTRY AND ITS IMPACT TO SHAREHOLDERS FUND (A CASE STUDY OF SELECTED BANKS IN KADUNA STATE)

ABSTACT Consolidation in the banking industry is the process f combining financial data from several department or business entities all over the world. Consolidation, reconstruction, mergers and acquisition in the Nigeria banking industry were reform strategies adopted to reposition the banking sector. These are done to achieve and improved financial and operational efficiency which will increase the confidence of investors in the banking sector. This research work carried out to analyze the impact of banking and the shareholders fund on return in Nigeria. The study used return on equity (ROE) for this study five banks were selected using stratified sampling techniques in which secondary data was used, data were collected from the selected banks and more analyzed. The objective in this study is to assess the impact of consolidation on the performance of bank in Nigeria to see if there is any relationship on capital productivity and shareholders fund. The methodology involved in this study had been drawn and carried out with specific references to data collection techniques. The findings were used to provide answers to the research questions raised by the study. Recommendations were to endure that the cost of doing business in Nigeria is educed significantly to allow the banks to make more profit to also place good corporate governance that will allow for transparency and minimization of fraud in the banks. It is not all the time that consolidation transforms into good performance of the bank and t is not only capital that make for good performance of the banks as banks consolidate the economic environment has to be conducive to make good profit and deepen the financial structure of the economy.