Nigerian Banking Strategy

In 2004, the Nigerian banking sector had undergone a significant policy change which led to the waves of consolidation and recapitalisation exercises in the financial sector and the policy in part include the increased in minimum capitalisation requirement from N2 billion naira to N25 billion. The consolidation and recapitalisation exercise that followed saw the emergent of 25 banks from the 89 banks operating in Nigerian prior to the banking policy implementation. The policy implementation not only resulted in a leaner and more robust banking sector but created a strong and solid banking sector to support the growing economy thereby strengthens the Nigerian banks to expand their operations beyond Nigeria especially in Africa (AFDB, 2013).

With the increased capital the bank growth strategy was to diversify their operations into new business areas to strengthen their market positions at home and abroad as explained by the interviewees:

With the additional capital that the bank brought from the recapitalisation program, it also strengths our ability to expand our business beyond our first point of call which was Benin ((BDM_g2 December 2015)

The bank expansion strategy is enhanced specifically through its business and retail banking strategy for example the strategy entails the identification of new emerging segments of the economy such as the education sector. It is also the strategic objectives of the bank 's to expand through robust and efficient balance sheet, strategic partnership with multilateral agencies as well as MSME initiatives leverage on e-payment and cash management services . Additionally, through technological innovation, products BDM has constantly challenged the domestic market environment for competitive advantage. These advantages have placed the firms as market leader with differentiated services, growing organically its business operations locations and network of branches in the domestic

This growth is a proof of how rapidly the bank has expanded since 2004 been the years when the consolidation exercise was implemented. BDM growth can also be attributed to its acquiring the universal bank status in 2001 combined with successful public offering listing and placement in 2005 which substantially increased the Bank 's equity base. Subsequently, the bank became the first African Bank listed in the Global Depositary Receipts (GDR) Professional Securities Market of the London Stock Exchange also enhance the health of the bank and reputation. Today BDM has become accomplished, respected for its excellent service delivery, driven by innovation and operating the most advanced banking technology platform in the market. This is an evidenced and confirmations of the bank resilience in terms of sustained ROE and stock market performance in Tier 2 bank since 2014 (BDM annual report 2015). These excellent performances have won the bank several awards including "Nigeria Bank of the Year, 2009", the "Most Improved Bank of the Year, 2007" and "Best Bank in Mergers & Acquisition, 2006". The bank is also highly rated with BBB+ rating by Fitch Ratings, Agusto & Co., and A- rating by GCR, reflects the bank 's sustainable liquidity, sound and professional practices and good standing as a high