An Examination of the Soundness of Banks In Nigeria: A Case Study of Selected Banks

Abstract

The objective of this study is to examine the soundness of Banks in Nigeria: A case study of Access bank, Afribank, Ecobank, First Bank and Standard Chatered Bank were used. Data for the research were collected through primary and secondary sources namely the annual reports and account of the respective banks, Central Bank of Nigeria(CBN) banking supervision unit annual reports on the banks, textbooks , journals and seminar papers.. The data were analyzed and presented using tables, simple percentage and ratios based on CAMEL specifications. The hypotheses were tested using CBN bench mark for CAMEL and simple percentages. The findings of the study showed that the liquidity level of banks did not fall short of CBN bench mark of 30%during the study period; the banks’ capital adequacy exceeded the CBN bench mark of 10% during the study period; the banks gross earnings has been on the increase during the study period; the banks have good asset quality as evidenced by their level of performing loans during the study period; the banks management were efficient and have the expertise required to manage their banks during the study period.