EFFECTS OF MERGER AND ACQUISITION ON BANK CUSTORMERS' SERVICE DELIVERY. (A CASE STUDY OF FIRST CITY MONUMENT BANK PLC)

n order to strengthen the competitive and operational capabilities of banks in Nigeria with a view towards returning global and public confidence to the Nigerian banking sector and the economy in general, the Central Bank of Nigeria instituted a banking reform in 2004. 

Mergers and Acquisitions have taken charge in creating a market niche by making top notch service delivery achievable through the synergy that is achieved after M & A takes place. The Nigerian banking sector has seen many large financial institutions go through mergers and acquisitions at a heighted pace so as to achieve great levels of synergy. M & As is alluded to be resultant from the dynamic operating business environment. The research sought to establish the Effect of Mergers and Acquisitions on Bank customers Service Delivery at First City Monument Bank Plc.

The study employed descriptive data; sourced through panel of data method range between the period of 2009-2016. The data were tested using cross –sectional survey and chi square analysis with the help of statistical package for social science (SPSS 20.0).

From this study, findings indicate that M & A’s had an impressive positive effect on overall customers’ service delivery, capital base and bank performance. As the results indicate; mergers and acquisitions offered competitive advantage which enabled the bank to grow in ten folds. This in turn has positively contributed to increase in efficiency and reduces the amount of time taken to deliver a service through improvement in service delivery.

The study recommends the management of First City Monument Bank should use the service delivery quality to propel the company to greater heights in post Merger and Acquisition by excellent service delivery to its customers.

Keywords: Merger, Acquisition, Synergy, Consolidation, Economic of scale, Deposit base, efficiency, Capital base.

TABLE OF CONTENTSPages

Title pagei

Certificationii

Dedicationiii  

Acknowledgementiv - v

Table of contentsvi

Abstractviii

CHAPTER ONE

1.1 Background of the Study1

1.2 Statement of the problem2

1.3 Objectives of the Study3

1.4 Justification of the Study3

1.5 Research Methodology4

1.6 Scope of the Study 4

1.7 Plan of the Study5

1.8 Operational Definition of Term5 

CHAPTER TWO

2.0 Introduction7

2.1 Review of Literature7

2.2 Theoretical framework8

2.3 Review of Related Empirical Studies11

2.4 Conceptual Framework13

2.4.1 Legal Framework of Merger and Acquisition 14

2.4.2 Bank Consolidation through Merger and Acquisition15

2.4.3 The reforms Agenda for Mergers and Acquisition16

2.4.4 The Position of the Banking sector before Consolidation17

2.4.5 Reason for Bank Merger and Acquisition18

2.4.6 Prospect of Banks after Merger and Acquisition19

2.4.7 Approval under Merger and Acquisition 20

2.4.8 Procedures for Obtaining Approval for Merger and Acquisition20

2.4.9 The role of Regulatory authorities in Mergers and Acquisition            21

2.4.10 Types of Mergers and Acquisitions24

2.411 The Implication of Mergers and Acquisitions on Banking Industry 20

2.5 Historical background of First Munument Bank21

2.6 Measuring of Bank Customer Service Quality delivery21 

CHAPTER THREE

3.1 Research Design 22

3.2 Population of the Study22

3.3 Sample size and Sampling Techniques 22

3.4 Research Instrument22

3.5 Validity of the Instrument22

3.6 Reliability of Instrument23

3.7 Method of Data Collection23

3.8 Method of Data Analysis23 

3.9 Limitation of Research Methodology24

CHAPTER FOUR

4.0 Introduction25

4.1 Presentation of Data25

4.3 Test of Hypothesis36

4.4 Discussion Findings42

CHAPTER FIVE

5.0 Introduction43

5.1 Summary of the findings43

5.2 Conclusion44

5.3 Recommendation44

5.4 Research for further Studies

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