Department of Business Adminisration, University of Ilorin, Ilorin, Nigeria
Gunu, U., Department of Business Adminisration, University of Ilorin, Ilorin, Nigeria
Banking Industry recapitalization was intended to improve so many indices in the Banking Industry. Some of the indices are affected were; Shareholders Fund, Total Assets, Number of Branches and Employment. The magnitude of improvement of the current indices and the former indices before recapitalization are not the same. The research sought to discern the nature of change in the indices after recapitalization. The objective of the research is to identify the extent of impact on employment of recapitalized banks shareholders fund, total assets, and number of branches. The research is an explanatory study that establishes causal relationship between employment and indices of recapitalization. The data used were secondary data. Simple percentages and multiple regression analysis were used to analyse the data. The study revealed that there was reduction in employment in the Banking Industry between 1999 and 2001. There was appreciable increase in employment in the Nigerian banking industry after the consolidation exercise from year 2006 up to 2008. Two Banks have 23.04% of the total shareholders fund in the banking industry. 25% of banks in Nigeria had less 2% of total shareholders fund. 8.33% of banks in Nigeria had less than 1% of total shareholders fund. Other banks shareholders fund are between 2% and 7%. 20.83% of Nigerian banks had less 2% of Total Assets in the banking industry. 8.33% of Nigerian banks had 20.35% of Total Assets. Other banks have between 2% to 8% of Total Assets. Results of multiple regression analysis revealed that shareholders fund, Total Assets and number of domestic branches caused 62.0% of employment in the banking industry. Shareholders fund and Total Assets were not significant variables that have linear relationship with employment in the Banking industry.