What are the effects of recapitalization in Nigeria banking sector?

Answer 1

In brief: it causes unemployment due to downsizing, merger and acquisition, it causes deflation as more money is raked from peoples hand (through sales of shares) in order to build the new capital base. Its also leads to current crisis of the banking sector (i.e the unethical lendings without collateral as the banks has so much money to give to "nobody" as the recapitalisation is aimed at attracting foreign investors that cries of the countrys' weak financial/capital market.yet.none of them invest in the country and the industrial sector is totally wiped-out.). It also distanced the banks from the small-scale/medium-scale entities,as the banks has grow bigger.thus, aiming at big business with lucrative interests. by ahmadbox75@Yahoo.com