Core Competences and Optimising Bank Capital Management in Nigeria

Abstract

This study explores empirically how core competences predict efficient bank capital management in the Nigerian banking industry. We adopted competence predictors namely, knowledge, skill, and attitude as our independent variables and return on capital employed (ROCE), the common method of measuring the size of returns derived from capital funds as our dependent variable. The empirical evidence obtained revealed a dwindling state of employees' core competences, meaning that the necessary knowledge, skill, and attitude required to efficiently manage bank capital were lacking in a good proportion of employees under investigation. Of course, the empirical results may be the reflection of the recruitment strategy that undermined professionalism in academic qualification of bank employees which has been prevalent in the industry from the 1980s and may also serve as a lesson for relevant authorities in the industry.