Bank consolidation policy in Nigeria is a measure to increase
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Correct Answer: Option A
Explanation:
Bank consolidation is the process by which one banking company takes over or merges with another. This leads to a potential expansion for the merging bank. It is usually done to maintain and reach the required capital base as instituted by the central bank.
A bank's capital base is the "cushion" for potential losses, that protects the bank's depositors and other lenders. It is the required amount set aside in assets to mitigate against losses.
Bank consolidation is the process by which one banking company takes over or merges with another. This leads to a potential expansion for the merging bank. It is usually done to maintain and reach the required capital base as instituted by the central bank.
A bank's capital base is the "cushion" for potential losses, that protects the bank's depositors and other lenders. It is the required amount set aside in assets to mitigate against losses.