Abstract
Using stochastic frontier technique, this study examined the changes in the profit efficiency of Nigerian banks after the recapitalization exercise of central bank of Nigeria for the period 2006 to 2008. The results showed that the estimated profit efficiency scores for 2006, 2007 and 2008 for troubled banks were 0.79, 0.89 and 0.94, respectively while corresponding values for healthy banks were 0.47, 0.66 and 0.81. Average efficiency score of all sampled banks were 0.59, 0.75 and 0.86 for 2006, 2007 and 2008, respectively. The finding implies that profitability is not a good measure of performance.
Keywords
- Post Consolidation Search this journal for Post Consolidation (opens in a new tab)
- Profit Efficiency Search this journal for Profit Efficiency (opens in a new tab)
- Troubled Banks Search this journal for Troubled Banks (opens in a new tab)
- Healthy Banks Search this journal for Healthy Banks (opens in a new tab)
- Performance Search this journal for Performance (opens in a new tab)
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Copyright (c) 2012 Oladele, P. O., Abosede, A. J., Akeke, N. I. (Author)

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Keywords
- Post Consolidation Search this journal for Post Consolidation (opens in a new tab)
- Profit Efficiency Search this journal for Profit Efficiency (opens in a new tab)
- Troubled Banks Search this journal for Troubled Banks (opens in a new tab)
- Healthy Banks Search this journal for Healthy Banks (opens in a new tab)
- Performance Search this journal for Performance (opens in a new tab)
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