Abstract:
This study seeks to measure the impact of reengineering on the Nigerian banking sector. In order to have a reasonable measure of this impact, the operational performance of four banks (FBN, UBA, Zenith Bank and STB) that have adopted the BPR were appraised. This was done with due recognition to the fact that some banks (because of their years of operation) have some conventional/ conservative approach to banking while some that are comparatively new in the sector have some modern/best practice attitude to banking. This forms the basis for the new and old bank dichotomy in the data gathering and analysis. In order to do a thorough appraisal of operations and an objective evaluation of the impact of Business Process Reengineering on the banks, the study analyzed and compared the operational results of the selected banks for three years before the introduction of the BPR, with the results of operation [or the first three ye a r s after the introduction of BPR. This comparison was based on the core performance measurement criteria, viz profit margin analys is (efficiency ratio), assets utilization analysis and liquidity ratio. The test of impact of BPR was done through the use of correlation analysis (r) which is a test of relationship between variables. By this, the operational results before the introduction of BPR were taken to be .the independent variables (x) and the results after the introduction of BPR were taken to be the dependent variables (y). The result of the test showed that 'r' is positive. By this, there is a positive change in the operations of the selected banks after the introduction of BPR. This implies that Business Process Reengineering h a s a positive impact on the operations of the s elected banks. However a further study may be necessary to highlight the side effect of BPR to the operations of the banking sector.
