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ABSTRACT
This research work presented an analytical look at the effect of bank recapitalization policy on banking sector performance in Nigeria over the period of 1981 – 2019, to this effect, an empirical analysis was carried out in an attempt to identify factors which affect banking sector performance both directly and indirectly in Nigeria in the framework of the Ordinary Least Square. Results obtained suggested that money supply play significant role in determining the performance of the banking sector in Nigeria.
For continuous growth, stability and profitability of the banking sector to be encouraged and sustained the government through the use of fiscal and monetary policies should ensure that productive capacities are improved upon and policies which encourage portfolio diversification, profitability and risk minimization are sustained.
