MSc in International Business Management

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Browsing MSc in International Business Management by Subject "Capital Adequacy Ratios"

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    The Impact of Treasury Single Account Policy on the Performance of Deposit Money Banks in Nigeria
    (Griffith College, 2021) John Udo, Ukemeobong
    research work is on the Impact of treasury single account on the performance of deposit money banks in Nigeria (2009-2019). Treasury single account policy which was implemented in 2015 in Nigeria in no doubt, drained the excess liquidity from the banking sector. It was for this reason that this study was set out to ascertain the implications of treasury single account on the performance of deposit money banks in Nigeria for the period under review. The specific objectives were therefore to examine if their exist any significant relationship between interest rate, inflation, average liquidity ratio, net interest margin, nonperforming loan ratio, total deposit, capital adequacy ratio and exchange rate on the profit before tax of deposit money banks and also to determine if there exist any significant relationship between shareholders fund, federal government deposit, money supply, total deposit, loans and advances, gross domestic variable and external reserve on the total asset of deposit money banks in Nigeria for the period under review. The sample size of the study was the same as the population which involved twenty seven (27) deposit money banks that operated in Nigeria as at 2019. Purposive sampling was used for the study. The secondary data used for the study was sourced from the Nigerian Deposit Insurance Corporation, the Nigerian Bureau of Statistics and the Central Bank of Nigeria Statistical Bulletin. Linear regression statistics was used to analyse the data. The findings revealed that the variables of net interest margin, nonperforming loans and capital adequacy ratios were all significant to the profit before tax of deposit money banks while shareholders fund, federal government deposit and total deposit were significant to the total asset of deposit money banks. It is therefore recommended that Deposit money banks should try as much as possible to reduce its interest expense in order to maintain a favourable net interest margin, which would result in a high profit before tax of banks. This can achieve by reducing the level of debt in its capital structure. Deposit money banks should always ensure that risky assets been invested upon are well collaterized in order for the bank to avert the risk of loss in an eventuality. This would drastically reduce the level of nonperforming loans. Keywords: Treasury single account, Bank Performance, Deposit Money Banks, Capital Adequacy Ratios, Nonperforming Loans, Net Interest Margin, Profit before Tax.