0
Add your answer:
Earn +20 pts
What does it mean N70 or n40 in a battery?
N70 is 70ah
Which servers are the best for business?
The four most popular and best selling servers as of December 2012 are the Buffalo TerraStation Pro, ProLiant N40, Dell PowerEdge T410 and the QNAP TS-219.
The difference between a NV7 and a N40 rack and pinion?
NV7 is with Variable Effort Steering. N40 is with Non-Variable Effort Steering. Check the "Service Parts Identification" sticker for your car. Variable Effort Steering will have an electronic control valve on one side of the power steering pump with an electrical connector. The Variable Effort Steering "EVO" valve adjust the amount of power steering assist. It is intended to make the steering stiffer at higher speeds. This helps prevent the vehicle from wandering at highway speeds.
What are the longitude and latitude of Spain?
Madrid is located at: N40 degrees, 25.829 minutes W003 degrees, 41.597 minutes based on NAD27 CONUS NAD 27 stands for North America Datum (NAD) 1927 (27). A datum is a mathematical description of the surface of the Earth. There are many such descriptions. Geographical coordinates will change from one datum to another. The coordinates given here are only valid for this datum. For example: N40 degrees, 25.781 minutes W003 degrees, 41.484 minutes is Madrid's location based on WGS84 (World Geodetic System) 1984 which is another widely used datum. Spain itself sometimes uses the Europe 1950 datum. The coordinates is that case would be: N40 degrees, 25.852 minutes W003 degrees, 41.411 minutes.
What is the Sergels Torg in Stockholm?
It is an unusual traffic circle created by Piet Hein, a Danish poet and scientist, in the 1960s. The shape is between a rectangle and a circle. A glass column was later added...picture at http://www.vad1.com/photo/stock/n40-2.html It was named after 18th century sculptor Johan Tobias Sergel, whose workshop was once located north of the square.
Where was the location of the first Olympics?
The first ancient Olympic Games were held in Greece and the first modern Olympic Games were also held in Greece.
What is fish sauce?
Fish Sauce is made from a combination of fish and salt. Most are made from anchovies, but can be made from various fish or even squid. Like cooking with wine, the better the quality of fish the better quality of fish sauce. One of the best fish sauces on the market today is made by BLiS. It is barrel aged with Red Boat N40 in bourbon barrels that previously aged maple syrup. The combination is unlike any other fish sauce on the market today.
What place in Utah starts with X -?
One place in Utah that starts with the letter "X" is the city of Xanadu. Xanadu is a small community located in Uintah County in northeastern Utah. It is known for its scenic beauty and outdoor recreational opportunities, including hiking, fishing, and camping.
What is the longitude and latitude of New York NY?
By Amar J........9/14/09Link- www.convertunits.com/distance/city/New+York,+NYDue to some research I did, the latitude and longitude of the Bronx goes as so:Latitude: 40.714166740° 42' 51" N40 degrees, 42 minutes, 51 seconds NorthLongitude: -74.006388974° 0' 23" W74 degrees, 0 minutes, 23 seconds West
How many sides does a regular polygon with an exterior angle measure of 40 degrees have and how do you do it?
(The exterior angles of a regular polygon total 360 degrees. 360 divided by 40 = 9 sides. For a more difficult way to come up with the same information, read on.)Okay, this is probably not the most efficient or simple way to do the problem, but I'll show you the way I did it.First you determine the measure of the interior angles that correspond with the exterior angles. The exterior and interior angles form a straight line. Since a straight line is always 180 degrees:40+y=180where y= the measure of any interior angle (they're all the same)40+y-40=180-40y=140so, the interior angles are 140 degreesThen I wrote a formula to find the total measure of the interior angles of a regular polygon given n sides.A regular triangle has 180 total degrees, a square has 360, a pentagon has 540, etc.A formula that works for all of these is:x=180(n-2)where n is the number of sides andwhere x is the total measure of the interior anglesTo get the measure of each angle you simply divide by n, so we now have:x/n=180*(n-2)/nI'll replace the x/n with y for simplicity(y=the measure of each interior angle)y=180*(n-2)/nNow simplify the equation to simplest termsy=180*(n-2)/ny=180*((n/n)-(2/n))y=180*(1-(2/n))y=180-(360/n) (Distributive property)We have already figured out y from earlier in the problem, so just plug it in and solve for n.140=180-(360/n)-40=-360/n40=360/nn(40)=(360/n)n40n=360n=9
What is an awesome free rider 2 track?
-c 1e -5 1l h 1c,-1b 74 -i 6t,-1b ek -r f4 -f ek,3c 1vm 3o 1vs,-49 l5 -3n la,-2i 102 -21 10c -1g vv,-2d 1a4 -2e 1at,-34 1av -2i 1ar,-8r 1f9 -8g 1g7,-6l 1kl -52 1jv,-6n 1kl -7h 1o3,-bj 1r7 -an 1r9,-9f 2em -8k 2eo -8j 2dq,-bt 2ha -c1 2i4 -bj 2i9 -au 2i3,-eq 2r3 -bu 2ot,-j4 2uq -j2 2vf -ib 2vh,-di 3a3 -e6 3b1,-gv 3gk -im 3p3 -jf 3pu -kf 3qe,-km 3qh -mb 3qj,-MD 3qj -nq 3pq,-nq 3po -oh 3np,2h i9a 2r iag 3s ibo 4p icr 5o idm 7g iel 95 ife b0 ig3 cv igk fh ih0 i5 ihd kl ihr n5 ii8 pn iij sc iiu uu ija 11b ijo 13l ik7 15s ikn 180 il8 1a2 ilp 1c2 imc 1e0 imv 1fs inj 1hn io7 1jh ios 1l9 iph 1n0 iq6 1on iqs 1qc iri 1s1 is8 1tm isv 1va itm 20t IUD 22g iv4 242 ivr 25k j0i 271 j26 289 j46 29i j63 2aq j7t 2c3 j9m 2de jbe 2ep jd4 2g4 jep 2hg jgd 2in jhchicken pie6,2ev jo6 2en jq4 2ej js2 2ej ju0 2em jvv 2es k1u 2f4 k3t 2fd k5s 2fo k7r 2g4 k9q 2gi kbq 2h0 kdp 2hf kfo 2hv kho 2ig kjn 2ii kll 2hn kmi 2gh knq 2fk kpe 2er kr5 2e6 ksu 2di kup 2d1 l0k 2ch l2h 2c3 l4d 2bm l6b 2bb l88 2b0 la6 2am lc5 2ae le3 2a5 lg2 29t li0 29m ljv 29f llu 298 lnt 292 lpt 28s lrs 28m ltr 28g lvr 28k m1q 291 m3o 29r m5l 2au m7c 2c7 m90 2di maj 2f3 mc2 2gg md2 2hs me2 2j6 mf2 2kd mg2 2m2 mhc,2m2 mhc 2no mik 2ph mjo 2rc mko 2sv mlc 2ui mlv 304 mmh 31q mmt 33n mn5 35o mna 37o mnf 39r mnh 3bt mnj 3dv mnl 3fv mno 3ht mnt 3jq mo2 3ll mo9 3ne mog 3p7 moo 3qu mp0 3sl mp9 3ub mpj 400 mpt 41l mq7 43p mpp 458 mol 46k mne 480 mm8 49j ml3 4b5 mk1 4cn mj0 4e9 mhu 4fr mgn 4hc mfh 4iu mec 4kf md9 4m1 mc8 4ni mb7 4p3 ma8 4qk m99 4s4 m8c 4tl m7f 4v6 m6j 50m m5n 525 m4t 534 m6g 52u m9c 52p mc9 52o mf1 52p mhk,52p mhk 52t mk3 534 mme 53c mom 53c mqp 52n msi 525 mu9 51l n00 518 n1n 50u n3f 50l n55 4ut n5r 4ss n61 4pk n59 4mc n4f 4j9 n3j 4gc n2k 4dl n1k 4b2 n0j 48i mvd 465 mu6 43s mt1,50r n59 520 n48 537 n2m 54a n1a 55f n03 56p mv2 586 mu5 59l mtc 5a9 msr 59c mts 58e mv5 57k n0f 56t n1m 566 n2v 55s n3o 57s n35 59i n2n 5b7 n2b 5cs n22 5ec n1b 5g8 n0e 5i4 mvl 5g9 n0h 5e1 n1f 5c1 n2a 5a8 n31 58k n3n 56p n4h 556 n57 588 n5u 5b5 n6g 5dt n73 5ge n7f 5ij n79 5kd n6u 5lo n6h 5jt n6d 5hu n70 5g2 n7i 5e8 n82 5cg n8h 5au n8u 5d7 n8p 5fk n86 5hq n7j 5ju n6u 5m1 n6b 5o0 n5r 5pu n5d 5rh n53 5pp n6a,5pp n6a 5o8 n73 5ml n7r 5l4 n8g 5jb n98 5hq n9s 5jr n95 5m2 n88 5o0 n7e 5q1 n6n 5s3 n62 5u8 n5f 60b n4t 62c n4e 64a n41 620 n4v 5uo n65 5sd n71 5q5 n7t 5ns n8r 5lm n9p 5ii nb5 5fn nce 5iq nbs 5lv naq 5p7 n9p 5s8 n8q 5v3 n7u 61q n75 64c n6d 66q n5o 694 n54 6bc n4i 6dg n40 6fj n3g 6hj n31 6jh n2j 6le n26 6jf n39 6h3 n3v 6ek n4k 6cb n58 698 n62 66e n6u 63p n7t 61a n8r 5v0 n9o 5sp nal 5qj nbh 5oh ncd 5mi nd9,5mi nd9 5km ne4 5j3 net 5lk neg 5oc ndr 5rn nd1 5u7 ncf 60j nbu 62s nbf 663 nap 694 na4 6bv n9i 6el n91 6h7 n8g 6jl n81 6lv n7j 6o7 n76 6qb n6q 6sd n6e 6ud n63 70c n5o 728 n5e 73v n57 728 n5n 70g n66 6ug n6m 6s0 n7a 6p5 n7u 6mn n8a 6kb n8l 6i1 n91 6em n9h 6bi na2 68k nai 65r nb4 637 nbm 60n nc7 5v1 nco 615 nd1 654 ncm 67t ncf 6ai nc8 6d2 nc2 6ff nbt 6ir nbm 6m0 nbf 6p0 nb9 6rp nb4 6ue nb0 70v nas 73c nap,73c nap 75l nam 77i na7 797 n9p 7b0 n99 7cn n8q 7eo n8a 7gf n81 7i4 n7o,7i4 n7o 7jp n7f 7ld n77 7n1 n6v 7p6 n72 7r5 n7r 7t3 n8o 7v0 n9o 80e nan 81t nbo 83e ncq 84u ndu 86f nf2 87v ng7 89g nhl 8b2 nj2 8cj nkd 8e5 nln 8fm nn0 8h8 no7 8ip npe 8ka nqj 8lq nro 8nb nss 8os ntv 8qc nv2 8rs o04 8td o16 8ut o27 90d o39 92b o44 949 o4v 967 o5r 985 o6o 9a4 o7l 9c2 o8j 9e0 o9h 9ff oa7 9gu oau 9id obl 9js occ 9lb od3 9mp odq 9o8 oeh 9pn of8 9rm og2 9tl ogp 9vj ohg a1i oi7 a3i oif a5j oii,a5j oii a7k oin a9k oit abl oj5 adl ojd afl ojb,afk ojn ah4 ojs aj5 ok3 alf okc aoa okn ara ol2 aud ole b14 olp b3i om3 b5p omb b7q omi b9m omp bbc omv bdc on6 bf5 onb bgl onf bhv oni bja onl bkb onn bm2 oo0 bo2 ooh bpk oou br5 opd bsn oqg btn os6 btd ou4 bt6 ovv bt2 p1q bt0 p3j bt1 p5a bt4 p71 bt8 p8n bte PAC bvg pbp c0h pcv c15 pef c1p pfu c1v phm c22 pjh c22 pld c21 pn9 c20 pp8 c1s pqr c1g psu c0l pue bvh pvr bup q1c bue q3f bu6 q5j bvi q74 c12 q8i,c12 q8i c2g qa1 c06 qbl btg qco bs4 qdv brv qfm bqv qh8 br9 qj6 br7 ql0 bs1 qmc bs9 qno bu3 qnm bve qo3 c1u qou c1i qqs c0r qs1 bvj qtt bv6 qv7 bvc r0e bsb r11 bq1 r1f bs5 r2s buf r39 c1n r3t c42 r4j c10 r56 bud r5k brv r62 bpk r6h bn5 r72 bpe r7b bs3 r7f bu0 r7o bqm r8j boc r96 bl3 ra3 bjr ran bm8 rbb bo2 rbq bm2 rdr bju reo bic rfr ble rge boc rh2 br5 rhm boe riu blv rjk bjj rka bhe rl0 bkn rm3 bo2 rmg,bo2 rmg bpk rn0 bmn rnh bjc ro3 bgp roj bjm rou bm8 rp6 bnu rpf bm2 rqj bk3 rr4 bic rri bh1 rru bka rrr bni rrp bpm rs0 bnj rsl blc rt1 bj6 rtd bh4 rts bfh ruk bf0 s0l bfa s2l bgj s45 bi9 s5h bkg s6r bmp s83 bp4 s98 brf sad btq sbg c0f sce c32 sda c5j se7 c82 sf2 caf sfs ccr sgm cf4 shg ch9 sib cjc sj7 cld sk3 cnc sl0 cp9 sls cr5 smq csv snn cuo soa d0f sou d26 spi d3r sq7 d5h sqt d75 srj d8p ss9 dad st0,dad st0 dc0 stn ddi suf df4 sv6 dgk svs di5 t0i djk t14 dlh t1k dni t18 dpk t0r drl t0g dtn t08 dvn t03 e1o svv e3p svt e5p svt e7p svt e9p svv ebp t01 edp t04 efp t08,efc t0g egj t0f eii t0j eki t0n emb t0l eo8 t0f er9 svo eu9 sum f0v ssp f3b sqe f5a snk f71 skn f8l shv fa6 sfc fbl sct fd5 sah fet s8b fg5 s6b ff9 s4h fdv s3i fcg s2c fbh s0g far rue fae rsr fa3 rr9 f8p rpq f74 Ron f5b roq f3r rpa f31 rqj f3o rsf f5b rtu f7q rvg f9v s0q fbl s1g fcr s1d fdt s15 fel s1f fdm s2l fbu s3v faa s5a f8s s6o f7e s8b f6c s9l f55 sb8 f42 sck f35 se2 f28 sfh f13 sh1 evt sij eup sk4,eup sk4 eto slk esq sn1 esa sor esa sqn ese ssq esg sus esf t0v ese t30 esb t52 es7 t73 es2 t8f es2 t7j es3 t6q es4 t64 es8 t4p es9 t3e es9 t29 es8 t17 erj t2g er6 t46 epr t5o enu t6r em5 t7u eke t91 ej3 t8n elg t7v eos t8p es5 t9b ev7 t8m f1r t7r f42 t77 f2v t9o f10 tb5 ev5 tci esi tej eqc tdr es2 teq etn tfm evi tgh f1a THC f2v ti9 f4h tj5 f61 tk2 f7e tkv f8q tls fai tn3 fc7 tob fdq tpi ffb tqq fgr ts3,fgr ts3 fi9 ttb fjn tuj fl3 TVs fll u0f fl9 tva fj2 tti fgt tsb fe4 tqv fbf tpl f8v toc f6i tn6 f49 tm1 f23 tku f00 tjs et0 tib eq7 tgt enh tfh el1 te6 eik tcu ega tbn ee4 tai ec0 t9d e9u t8a e7v t78 e61 t66 e45 t56 e2b t46 e0h t36 dup t27 dt2 t18 drc t0a dqj t2p drk t5c dsj t7j dte t9g dst tbf drp tcn dqi tdt dpc tf1 do6 tg2 dmt tgq dmg tfs dmj tf0 dmm te3 dnj td4 dp2 td0 dq5 te4 dqa tfs dq5 Tia dpu tkd,dpu tkd dpl tmf dpb tog dp0 tqe dok tsb,dok tsb do7 tu6 dnq u00 dnc u1p dmt u3g dne u5k dom u5u dph u54 dq0 u3c dqf u17 dqp tvl dra tts drs ts0 dsh tq6 dta tod du1 tmr dup tli dv3 tnn dup tqa duf tsn du5 tuu dts u0t dtk u2k dtb u4k dt3 u6b dt8 u7l du4 u8a dv5 u7t e06 u7b e0v u6t e0i u5k,e0i u5k e05 u44 e01 u2p dvv u1e dvv u06 dvv tup e01 ttg e01 trs dvv tqf e01 toq e03 tn9 e05 tm0,e05 tm0 dvo tko duv tjs du3 tkh dta tlg dsl tmc ds5 tng drl toj dr5 tpo dqm tr3 dqc tsi dq4 tts dps tv0 dpl u04 dpd u18 dp6 u25 dop u2r dod u1r dop u0q dov tvg dou tu7 dos tsu dos tro dp0 tqk dp8 tpi dpl toc dq7 tn0 dqn tlm dr3 tkf dr7 tj4 dr7 thr dr1 tgi dqn tf9 dqc te5 dpb tco do8 tbl dnc tb8 dmr tc9 dmg tdg dm6 tek dm3 tfo dm0 tgp dlu thn dlt tih,eam tn0 eal tob eae tpn ea6 tr6 ea1 tsf e9r tto e9l tv5 e9g u0k e99 u24 e91 u3k e8r u4v e8m u62 e8k u7g e8o u8v e94 uae e9t ubc ear ubl ebo ub5 eca ua5 ecf u8s ecf u7g ecc u5v ec9 u4h ec9 u33 eca u1l ecb u06 eci tua ecm tsj ecf tqr ec7 tpa ebu tnu ebl tmp eb3 tm2 eap tmq eaj tnm,ecr tg7 ebu tgb eb3 th1 eaf thu ead tiu ebf tjg eck tjf edg tj1 edt ti5 ee0 tha edj tgi ect tg6##T -23 vp,T -3 18,T -hi 3hc,T -hn 3i0
Effects of capitalizaton on Nigeria Banks?
The Impact of Recapitalization and Consolidation on Banks Costs of Equity in NigeriaAbstract:This study investigates the impact of the impact of the bank recapitalization and consolidation program on the cost of equity capital of banks in Nigeria. On the strength of the analysis done and the result obtained, the study concludes that the consolidation and recapitalization programme has brought about considerable reduction in the cost of equity capital of the sampled banks.INTRODUCTIONThe financial deregulation in Nigeria that started in 1987 subsequent to the adoption of the now abandoned Structural Adjustment Program (SAP) in 1986, generated a high and healthy degree of competition in the banking sector. This was because the financial deregulation provided incentives for the expansion of banks in terms of individual size and number of banks in operation. However, the increased competition in the financial sector in general and the banking sub-sector in particular, amidst political instability and financial policies inconsistencies on the part of the financial regulators, led to rapid decline in profitability of the traditional banking activities. Thus in a bid to survive and maintain adequate profit level in the ensuing political and policy instability in the Nigerian economy, banks started taking excessive risks which led to frequent bank failures and related financial shocks in the economy.In its effort to prevent frequent bank failures, on July 6, 2004, the Central Bank of Nigeria (CBN) announced a major reform program that would transform the banking landscape of Nigeria. The main thrust of these new reform program was the prescription of a minimum shareholders funds of N25 billion for all Nigerian banks. The banks were expected to increase their capital through the injection of fresh funds where applicable. The banks were also encouraged to enter into merger/acquisition arrangements with other relatively smaller banks thus taking the advantage of economies of scale to reduce cost of doing business and enhance their competitiveness locally and internationally.The program resulted in reduction in the number of banks from 89-25 through merger/acquisition involving 76 banks. Indeed, the importance of adequate capital in banking cannot be overemphasized. Thus, increasing the capital base of banks as intended by the consolidation exercise was aimed at increasing customers confidence in the banking sector primarily. It is also expected to lead to increase in profitability and higher returns for the shareholders. About 3 years after the completion of the 1st phase of the Consolidation program, this study sought to ascertain if some of this fundamental goals of the Consolidation program have been achieved and to what extent. This study therefore investigated the impact of Bank consolidation and recapitalization program on the cost of equity capital of banks in Nigeria. In other words, the study considered whether bank consolidation reduces the cost of capital of banks or not. In doing this, the study tested the hypothesis that: there is no significant difference in banks mean cost of equity capital before consolidation and the mean cost of equity capital after consolidation.The literatureTheoretical insights on bank recapitalization and consolidation: Generally, capital is needed to support business so therefore, the importance of adequate capital in banking cannot be overemphasized. Capital is an important element which enhances confidence and permits a bank to get involve or engage in banking. A very important function of capital in a bank is to serve as a means of absorbing losses. Capital serves as a buffer between operating losses and being unable to pay debt (insolvency). AsPhillips (1967) has correctly observed, the more capital a bank has, the more losses it can sustain without running into bankruptcy. Capital thus, provides the measure for the time a bank has to correct for lapses, internal weakness or negative developments. The larger size and capital a bank has, the longer the time the bank has before losses completely erode its capital. Apart from capital standing as a protection against losses, adequate capital gives other benefits among which are:•Protection of depositors and creditors in time of failure•Strengthening of bank ability to attract funds at lower cost•Enhances a bank's liquidity positionThe larger the liquidity of a bank, the less the bank is exposed to risk. The difficulty, however is that little skill is rewarded with return in line with observation in finance theory of positive linear relationship between risk and return. Thus while inadequate liquidity will destroy a bank's reputation, excess liquidity will retard earnings. In view of its significance, the regulatory authorities consider capital adequacy a primary index to monitor bank. The traditional measures of capital adequacy ratio are ratio of equity funds to risky assets and ratio of capital funds to risk assets.The minimum capital adequacy ratio as prescribed by Basle committee of central banks' supervision is 8%. This ratio relates capital to what is considered the banks biggest risk namely, credit. The 8% ratio implies that for every N100 credit, a bank needs N8 capital. A lesser ratio shows different degree of capitalization. The Basle committee is a group of international bankers that met to fashion out more stringent way of determining a bank's capital adequacy ratio. In its explanation of relevance of bank's capital base, the committee stated that a capital serves as a foundation for a bank future growth and as a cushion against unexpected losses. Adequate capitalized banks that are well managed are better able to withstand losses and provide credit to consumers and businesses alike throughout the business cycle including during downturns. Adequate capital therefore, helps to promote confidence in the banking system. Bank recapitalization and consolidation offers opportunities for facilitating adequate capitalization of banks.Consolidation is most commonly described as the reduction in the number of banks and other deposit taking institutions with a simultaneous increase in the size and concentration of the consolidation entities in the sector. It is mostly motivated by technology innovation, deregulation of financial services, enhancing intermediation and increased emphasis on shareholder value, privatization and international competition (Berger et al., 1999; De Nicola et al., 2003).The process of consolidation has been argued to enhance bank efficiency through cost reduction revenue in the long run. It also reduces industry's risk by elimination of weaker banks and acquiring the smaller ones by bigger and stronger banks as well as creates opportunities for greater diversification and financial intermediation.Consolidation in a banking system can either be market-driven and government induced. The market-driven consolidation which is more pronounced in the developed countries sees consolidation as a way of broadening competitiveness with added comparative advantage in the global context and eliminating excess capacity more efficiently than bankruptcy or other means of exit. On the other hand, government induced consolidation stems from the need to resolve problem of financial distress in order to avoid systematic crises as well as to restrict inefficient banks (Ajayi, 2005).One of the general effects of consolidation is the reduction in the number of players and thereby moving the industry more toward an oligopolistic market. Consolidation is achieved through merger and acquisition. A merger is the combination of two or more separate firms into a single firm. The firm that results from the process could take any of the following identities: acquirer target or new identity. Acquisition on the other hand, takes place where a company takes over the controlling shareholding interest of another company. Usually at the end of the process, there exist two separate entities or companies. The target company becomes either a division or a subsidiary of the acquiring company (Pandey, 2005).Mergers and acquisitions could raise profits in any of three major ways. First they could improve cost efficiency (by increasing scale of efficiency, scope, i.e., product mix efficiency or X-efficiency, i.e., managerial efficiency), reducing costs per unit of output for a given set of output quantities and input prices. Indeed, consultants and managers have often justified large mergers on the basis of expected cost efficiency gains.Second, mergers may increase profits superior combinations of inputs and outputs through improvements in profit efficiency that involve profit efficiency is a more inclusive concept than cost efficiency because it takes into account the cost and which is taken as given in the measurement of cost revenue effects of the choice of the output vector, efficiency. Thus, a merger could improve profit efficiency without improving cost efficiency if the reconfiguration of outputs associated with the merger increases revenues more than it increases costs or if it reduces costs more than it reduces revenues. Third, mergers may improve profits through the exercise of additional market power in setting prices. An increase in market concentration or market share may allow the consolidated firm to charge higher rates for the goods or services it produces, raising profits by extracting more surplus from consumers without any improvement in efficiency. In summary, banking recapitalization and consolidation is more than mere striking of the number of banks in any banking industry. It is expected to enhance synergy improve efficiency, induce investor, focus and trigger productivity and welfare gains.Empirical evidences on bank recapitalization and consolidation: The empirical literature is divided on the effect of recapitalization and consolidation in improving the performance and efficiency of banks. The studies by Berger et al. (1999) suggest that bank consolidations do not significantly improve the performance and efficiency of the participant banks. In contrast, Berger and Mester (1997), Berger and Humphrey (1992), Allen and Rai (1996) and Molyneux et al. (1996) indicate that there is a substantial potential for efficiency improvements from mergers of banks. However, the prospects for scale efficiency gains appear to be greater in the 1990s than in the 1980s. This finding is ascribed to technological progress, regulatory changes and the beneficial effect of lower interest rates (Berger et al., 1999).According to Shih (2003), the idea underlying the consolidation promotion policy is that bank consolidations should reduce the insolvency risk through asset diversification (Shih, 2003). There are a number of empirical studies which confirm a risk diversifying effect of bank consolidation whether directly or indirectly (Hughes et al., 1996, 1999; Benston et al., 1995; Craig and Santos, 1997;Demsetz and Strahan, 1997; Saunders and Wilson, 1999). On the other hand, Shih (2003) points out the possibility that credit risk could increase in the event a sound bank merges with an unsound one.Case studies evidences suggest that the cost efficiency effects of mergers and acquisition may depend on the motivation behind the mergers and the consolidation process (Rhoades, 1998). Haynes and Thompson (1999) explore the productivity effects of acquisitions for a panel of 93 UK building societies over the period 1981-1993. In contrast to much of the existing bank merger literature, the results indicate significant and substantial productivity gains following acquisition. These gains were observed not to be the result of economies of scale but are found to be consistent with a merger process in which assets are transferred to the control of more productive managements. Similarly, Resti (1998) reports increased levels of efficiency for Italian bank mergers and acquisition, especially when the deals involved relatively small banks with considerable market overlap. Sawada and Okazaki (2004) investigate the effects of policy-promoted consolidation on the stability of the financial system using the data on prewar Japan. It was confirmed that policy-promoted consolidations mitigated the financial crisis by enhancing the ability of the bank to collect deposits, under the condition that the financial system was exposed to serious negative shocks. However, policy-promoted consolidations also had negative aspects as they were accompanied by large organizational costs and decreased bank profitability.Akhavein et al. (1997) examine the efficiency and price effects of mergers by applying a frontier profit function to data on bank mega mergers in the US banking industry. It was reported that merged banks experience a statistically significant 16% point average increase in profit-efficiency rank relative to other large banks. Most of the improvement is from increasing revenues including a shift in outputs from securities to loans, a higher-valued product. Improvements were greatest for the banks with the lowest efficiencies prior to merging who therefore had the greatest capacity for improvement. By comparison, the effects on profits from merger-related changes in prices were found to be very small.Huizinga et al. (2001) analyze the efficiency effects of 52 horizontal bank mergers in Europe over the period 1994-1998, i.e., the period immediately preceding the start of European Monetary Union. They find evidence of substantial unexploited scale economies and large X-inefficiencies in European banking. The dynamic merger analysis indicates that the cost efficiency of merging banks is positively affected by the merger while the relative degree of profit efficiency improves only marginally. However, there was no evidence that merging banks are able to exercise greater market power in the deposit market. On the basis of these results, it was concluded that the bank merger and acquisitions examined in the study appear to be socially beneficial.Vallascas and Hagendorff (2011) analyze with a sample of 134 bidding banks, the implications of European bank consolidation on the default risk of acquiring banks. The Merton distance to default model was employed to show that on average, bank mergers are risk neutral. However for the least risky banks, mergers generate a significant increase in default risk. This result is particularly pronounced for cross-border and activity-diversifying deals as well as for deals completed under weak bank regulatory regimes. In addition, large deals which pose organizational and procedural hurdles, experience a merger-related increase in default risk. The researchers are of the opinion that these results cast doubt on the ability of bank merger activity to exert a risk-reducing and stabilizing effect on the European banking industry.Rationale for bank recapitalization and consolidation in Nigeria: Prior to 1992, the minimum paid up capital requirement for banks in Nigeria was N12 million for merchant banks and N20 million for commercial banks. A review that year moved the requirements to N40 and 50 million, respectively. This level lasted till 1997 when a uniform N500 million minimum capital was introduced. The reason for discontinuing the dichotomy was to allow for a level playing field and the realization that there was no real difference between the capital requirements of the two categories. It was also to prepare the system for the introduction of universal banking. In 2000, the minimum capital was moved to N1 billion for new banks while existing banks were expected to meet this level by December 2002.Total N2 billion minimum paid up capital was introduced for new banks in 2001 while existing banks were given until December 2004 to comply. The reasons for these adjustments include:•Increasing cost of IT and other infrastructure•Comparison with other jurisdictions•Inflation and increasing interest rates•Depreciation of the national currency, the Naira•Strengthening the operational capacity of deposit money banks•Minimizing the risk of distressThere was also the need to curb the spate of requests for licenses which in many cases were not backed with any serious intention. The absorptive capacity of the system was also an issue, i.e. things like the executive capacity to run the banks, supervisory resources, the cut throat competition that was breeding malpractices, etc. Consequently on July 6, 2004, the Central Bank of Nigeria (CBN) made a policy pronouncement.The highlight was the increment of the earlier N2-N25 billion with full compliance deadline fixed for the end of the year. The rationale as indicated is that most banks in Nigeria have a capital base of
