Cashless Policy and Financial Performance of Deposit Money Banks in Nigeria

Abstract

The study investigated the effect of Central Bank of Nigeria Cash less Policy and the Financial Performance of Deposit Money Banks in Nigeria.A panel data were collected from a sample of 14 banks covering 6 years spanning from 2012 when the policy was introduced in Nigeria to 2017.The study used return on Asset as proxy for bank performance while the value transactions done through the ATM, POS, Internet Banking, NIP and NEFT platforms (E-banking Products) were used to proxy cash less policy.In other to ensure the validity and the reliability of our data, we therefore subjected our data to a diagnostic test using Descriptive Statistic Analysis, Multicolinearity test, Correlation testing, and Herteroskadaticity testing.Findings from the study revealed that that (ATMV) has a positive and significant effect on return on assets (ROA) of banks in Nigeria while , POSV, WEBV, NIPV and NEFV were found to have a positive but insignificant effect on ROA of quoted banks in Nigeria.The study concluded that E-banking products as a proxy for cash less policy has positive effect on the financial performance of Deposit Money Banks in Nigeria.It was thus recommended among others that bank management should pay more attention on the activities that will improve the ATM services if they wish to increase the ROA.

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