Industry Convergence and Quality of Assets in the Nigerian Banking Sector

The aim of the research was to assess the implications of industry convergence on the Nigerian banks’ assets quality. The exact aims of the research were to: determine the degree to which capital adequacy ratio brought by industry convergence influences on the quality of banks assets in Nigeria; examine the effect of liquidity ratio brought on the quality of bank assets in Nigeria by industry convergence; ascertain the extent of influence of costs of intermediation brought on the Nigerian banks’ assets quality by industry convergence. Using ex-post facto research design, the data regression technique was engaged by econometric view. The results recognized that capital adequacy ratio, quality of assets of Nigerian banks are significantly affected by liquidity ratio as well as the cost of intermediation, as a result, suggests that: capital adequacy ratios should be periodically increased by Nigerian central bank as it contributes to better quality of asset.