The implementation of Treasury Single Account (TSA) in Nigeria ushered in\nsome drastic changes such that Central Bank of Nigeria (CBN) takes over the\ncustodian of public fund and Deposit Money Banks (DMBs) serve as collecting\nagent throughout the federation. This seems to be affecting the liquidity\nstate of DMBs. A bank with high liquidity problem might not be able to withstand\nnegative shocks and contribute to the stability of the financial system.\nAn in-depth analysis of the impact of TSA on the profitability of Money Deposit\nbanks will not only clarify the disaggregated findings reported by previous\nstudies, but also provide suggestions on how DMBs could improve their\nliquidity state. Based on incremental and stakeholdersâ?? theory, this research\nexamines the impact of Treasury Single Account (TSA) on the Profitability of\nDeposit Money Banks (DMBs) in Nigeria. Out of all the listed Deposit Money\nBanks (DMBs) in Nigeria, purposive sampling technique was used to select all\nthe 6 Systematically Important Banks (SIB) and data were collected on four\nindicators of profitability of banks such as Earning per Share (EPS), Profit after\nTax (PAT), Return on Equity (ROE) and Return on Assets for the period\nof 6 years divided into Pre-TSA (2012-2014) and Post-TSA (2015-2017). It\nwas discovered that through the analysis carried out via paired sampled t-test\nthat TSA exerts a positive insignificant impact on all the indicators of profitability\ncovered by this study except Profit after Tax (PAT) that has a negative\ninsignificant impact. Finally, it was recommended that managers of DMBs\nshould work out modalities that will foster the embracement of the core values\nof the banking system to collect depositorsâ?? funds, keep them safe and\nengage in intermediation to create wealth and jobs for the economy. Consequently,\noverdependence on government fund for operational activities\nshould be discouraged.
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