EFFECTS OF TREASURY SINGLE ACCOUNT ON PERFORMANCE AND SURVIVAL OF DEPOSIT MONEY BANKS IN NIGERIA

Patricia Onyemowo Agbo, Yohanna G. Jugu, A. A. Okwoli

Abstract


Treasury Single Account policy is a financial reform policy of the Federal Government of Nigeria introduced in 2015 to curb corruption that has eaten deep into the Nigerian Society, ensure accountability and transparency in all government finances. It is a government banking arrangements aimed at managing and controlling government's cash resources. As interesting as this may sound it has its implications on the financial sectors mainly the banks which are the heartbeat and the engine of growth in any developing economy. This research specifically examines the effect of treasury single account policy on the performance of banks and their survival in Nigeria. The objective of this research is to examine the effect of the policy on banks performance and survival. Secondary data had been employed. The
populations of this study are deposit money banks in Nigeria using a sample of 6 banks financial statement for one year through judgment sampling. The data were analyzed using the paired sample t- test analysis techniques and percentages. The result of this research shows that adoption of a Treasury Single Account (TSA) does not affect banks performance and survival using the two widely used measure of banks performance, the Return on Asset ROA and the Net Interest Margin NIM and measures of survival: the total assets, total deposit, loans and advances profit and before tax. Thus, the researchers recommend that for
the banks to sustain this performance, it must redefine the nature of competition, diversify economically and refocus on the original purposes for which they were set up- to collect depositors' funds (not necessarily government funds), keep them safe; engage in intermediation to create wealth and jobs for the economy and in the process earn profit for
themselves.

Keywords


Treasury Single Account, Banks Performance, Survival.

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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