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This study examines the response of depositors’ confidence to mergers and acquisitions (M&As) in the Nigerian banking industry. Secondary data covering the period 1997 to 2013 was used. The regression output with the aid of SPSS software yields mixed results. While the confidence of the three classes of depositors, namely: private sector depositors, public sector depositors and total private-public sector depositors, show positive but insignificant response to M&As as proxied by merger dummy variable, it indicates positive and significant response to shareholders’ fund an alternate proxy for M &As. The paired student t-test shows significant response of confidence of the three classes of depositors to M & As. Overall, the findings suggest that the mergers and acquisitions have enhanced depositors’ confidence in the Nigerian banking industry. It is recommended inter-alia that banks should design products and services with mass appeal to their existing and prospective private sector customers in order to sustain and boost their enhanced confidence in the banking industry. This would translate to further increased deposit mobilization.
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