Impact of Treasury Single Account (TSA) Implementation on Bank Liquidity in Nigeria
Journal Title: Scholars Journal of Economics, Business and Management - Year 2017, Vol 4, Issue 4
Abstract
Abstract:This paper assesses the impact of TSA implementation on the liquidity capacity of deposit money banks in Nigeria. The specific objectives were to examine the impact of Treasury Single Account (TSA) implementation on banks' current ratio, deposit mobilization and credit creation in Nigeria. The ex-post facto research design was employed and data collected from financial statements and annual reports of ten (10) banks; Access Bank, First Bank, Ecobank, Zenith Bank, UBA, Union Bank, Guaranty Trust Bank, Diamond Bank, Fidelity Bank and Sterling Bank between the period 2010 and 2015. The Augmented Dicker Fuller (ADF) test was employed to test for stationarity (unit root) in the series of data, and the Johenson Co-Integration test employed to test the existence of long run relationship between both dependent and independent variables. Regression Models were formulated and analyzed using Econometric views (Eviews) version 9.5. The statistical technique employed in testing the hypotheses was the student t – test statistic. Findings from the study revealed that Treasury Single Account (TSA) implementation has a negative significant impact on current ratio of banks, positive significant impact on deposit mobilization by banks. However, it has no significant impact on credit creation by banks to the public. Based on the findings it was recommended that Deposit Money Banks should source funds from other sectors of the economy and CBN should go beyond the guidelines and put in place measures to correct any lapses or negative impact of the policy on the banking sector. Keywords:Treasury Single Account (TSA), Liquidity, Deposit Money Bank, Deposit mobilization, credit creation
Authors and Affiliations
Lucy Andornimye
Keywords
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