BANK CONSOLIDATION ON INSURANCE BUSINESS ASSET IN NIGERIA, 2007-2022

Abstract

This seminar paper focused on the effect of bank consolidation on insurance business asset in Nigeria, 2007-2022. The specific objectives include to: examine the effect of bank capitalization on insurance business asset in Nigeria and determine the effect of bank credit on insurance business asset in Nigeria. Ex-post facto design was adopted. Preliminary tests were conducted using Ordinary Least Square Method (OLS), together with normality test (descriptive statistics) that proved how well distributed the variables were. Ordinary Least Square Method (OLS) method was used to estimate the variables. Empirical decisions were based on a 5% level of significance. This study revealed that bank capitalization had a negative and significant effect on insurance business asset in Nigeria (coeff = 1.893411, pv 0.02<0.05) AND bank credit had a negative and significant effect on insurance business asset in Nigeria (coeff = -2.007912, pv 0.022<0.05). The study concluded that bank consolidation had negative and significant effect on insurance business asset in Nigeria. The study recommended that CBN shall remain resolve and focused on the implementation of its statutory requirements even in postconsolidation so as to guide against distress in the insurance sector in respect of bank capitalization.