IMPACT OF TREASURY SINGLE ACCOUNT (TSA) ON LIQUIDITY OF DEPOSIT MONEY BANKS (DMBS) IN NIGERIA
Abstract
ABSTRACT
The study examined the impact of treasury single account (TSA) on bank liquidity of Deposit Money Banks in Nigeria. The study sought to examine the impact of Treasury Single Account on the liquidity base of the banking sector, evaluate the impact of Treasury Single Account on the profitability of Deposit Money Banks in Nigeria and ascertain the impact of Treasury Single Account on the financial stability of Deposit Money Banks in Nigeria. The survey research design was adopted in the study, while primary data were collected from the respondents using structured questionnaire. The data collected through the administration of questionnaire was analyzed using frequency counts and percentage method. The relationship between the variables was determined using regression analysis. Findings in the study revealed that: Treasury Single Account have significant effect on the liquidity base of the Deposit Money Banks in Nigeria. The finding in the study further establish that Treasury Single Account have significant effect on the profitability of Deposit Money Banks in Nigeria. It was also affirmed that the adoption of Treasury Single Account has enhanced the financial stability of Deposit Money Banks in Nigeria. It was recommended that; the financial institutions and their supervisors, that is, Central Bank of Nigeria, should be proactive and establish measures to ensure full compliance to TSA and correct any lapses or negative impact of the policy on the affected financial institutions among others. Banks are admonished to develop strategies that will enhance profitability level in the banking industry. This will require banks involvement in the financing of projects and other aspect of the economy. For the success of this policy government should promulgate more legislation to make it mandatory for all the three tiers of government in Nigeria. This will play a significant role in reducing corruption and financial mismanagement in all level of the economy.
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