—Following the banking consolidation exercise in Nigeria, the effect of capital adequacy on the performance of Access Bank Plc from 1999 to 2012 is examined in this study. The influence also of capital adequacy on the bank’s profitability is evaluated. Data sourced from annual report of Access Bank Plc for the years under scope, CBN Statistical Bulletin and journal articles was analyzed using the desk survey. Analytical technique employed is the multiple regression method. Empirical analysis indicates that there is no significant relationship between core capital and the profitability of Access Bank Plc and also that there is a significant relationship between supplementary capital and the profitability of Access Bank Plc. The study recommended, among others that provision of adequate capital regulation; provision of infrastructural base to support banking services and stability of the institution must be of imperative to the central monetary authority.
—Deposit money banks, capital adequacy, bank consolidation, profitability.
The authors are with the Department of Banking and Finance, University of Calabar, Calabar, Nigeria (e-mail: eyoakamba@ yahoo.com, firstname.lastname@example.org).
Cite: Eyo I. Eyo and Amenawo I. Offiong, "Effect of Capital Adequacy on the Performance of Access Bank Plc: (1999 – 2012)," International Journal of Trade, Economics and Finance vol.6, no.6, pp. 308-313, 2015.