Abstract: This study is on the nexus between treasury single account policy and the performance of deposit money banks in Nigeria from 2009–2019. The introduction of treasury single account moped up the liquidity in the banking sector. This might have an effect on banks since their primary function is to pool funds from the surplus sector in the form of savings and extend these funds to the deficit sector for investment purposes. The general objective of this study was to ascertain the impact of treasury single account policy on the performance of deposit money banks in Nigeria from 2009-2019; while the specific objectives were to examine if there exist any significant difference in non-performing loans ratios, capital adequacy ratios, average liquidity ratios and the profit before tax of deposit money banks for the period before and after the implementation of treasury single account policy Nigeria. The study made use of the quantitative research design. The sample size was equal to the population which comprised of 24 deposit money banks operating in Nigeria in 2009 and 27 deposit money banks in 2019. The sampling technique was purposive in order for the findings to be generalized. Secondary data were used for the study and it was sourced from the Nigerian Deposit Insurance Corporation and the Central Bank of Nigeria Statistical Bulletin. The data were analyzed using the paired sample t-test. The result revealed that the deposit money banks performance indicators had no significant difference between the periods before and after the implementation of tresury single account policy The study therefore concluded that treasury single account policy had no significant impact on the performance of deposit money bank for the period under review. It was therefore recommended that the Central Bank of Nigeria should use its monetary policy rate to influence the ction of the interest rate on bank lending in order for borrowers to gain access to loans and advances and also enhance the timely repayment of these loans. Deposit money banks should invest in risk weighted asset which ensures higher returns at the same time putting internal control meassures on ground to reduce the risk of loss to the bearest minimum. This would increase the operating income of deposit money banks..
Keywords: Treasury single account, liquidity ratio, capital adequacy ratio, non-performing loans, profitability, profit before tax.
Title: THE NEXUS BETWEEN TREASURY SINGLE ACCOUNT AND THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA: A PRE AND POST ANALYSIS (2009-2019)
Author: OKOH, Macdonald Osarhemen, Professor Nwankwo Odi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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