ABSTRACT

The evolution and development of banking business is a function of the ever increasing need to move fund from one area of surplus to the area of deficit (financial intermediation) and safe keeping of funds and valuables.

For banks to properly assume these responsibilities, it must be built on solid financial foundation such that is capable of withstanding the test of time.

It therefore stands to reason that, the ongoing recapitalization exercise in the financial institutions is sin quo non for a healthy banking practices. Recapitalization is a process of its reengineering a bank through enhancement of its financial resources, to redress its inadequacies of the past and fortify it for challenges of the future.

This project work centered on the various options available to banks to improve their paid up capital to the required amount of N25billion in carrying out this research, the researcher did not shy away from the fact that recapitalization policy of banks should be unveiled to the extent required to make progress in identifying the options which is mainly where the searchlight