The Impact of the Treasury Single Account (TSA) on the Performance of Listed Deposit Money Banks (DMBs) in Nigeria
Abstract
The implementation of the Treasury Single Account (TSA) in Nigeria has had significant implications for the performance of listed Deposit Money Banks (DMBs). This study aims to assess the impact of the TSA on the financial performance of listed DMBs in Nigeria. The specific objectives in this study are: to examine how the implementation of the TSA affected the liquidity position of listed DMBs, determine the impact of the TSA on the loan portfolios and credit intermediation of listed DMBs in Nigeria, to evaluate the implementation of the TSA influenced the fee income and non-interest revenue of listed DMBs in Nigeria
The study adopted an ex-post facto research design and used secondary data obtained from the statistical bulletin of the Central Bank of Nigeria. The sample consisted of selected DMBs based on specific criteria such as size, financial data availability, and reputation. Descriptive statistics and correlation analysis were conducted to analyze the data.
The findings showed that the implementation of the TSA resulted in a reduction in the deposit base of listed DMBs, affecting their liquidity position and profitability. The consolidation of government funds in the TSA led to a decrease in available funds for lending, constraining the ability of DMBs to provide loans. Additionally, the TSA significantly reduced the fee income and non-interest revenue of listed DMBs. The results highlight the need for effective liquidity management strategies and diversification of revenue sources for listed DMBs to mitigate the challenges posed by the TSA. The study provides empirical evidence of the impact of the TSA on the performance of listed DMBs in Nigeria,
This study contributes to the existing literature by filling the gap in research specifically focused on the implications of the TSA for the performance of listed DMBs in Nigeria.
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