ASSESSING CASHLESS POLICY MEASURES AND THEIR INFLUENCE ON COMMERCIAL BANK FINANCIAL PERFORMANCE IN NIGERIA
Abstract
This study examines the impact of Nigeria's cashless policy on the financial performance of deposit money banks (DMBs) from 2012Q1 to 2020Q4, focusing on key instruments: Point-of-Sales (POS), Automated Teller Machines (ATM), NIBSS Electronic Funds Transfer (NEFT), and web payments (WEBPAY). Using data from the Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation, the analysis employed Pearson correlation, Johansen cointegration, and FMOLS regression techniques. Results show that ATM and POS transactions significantly and positively affect banks' return on assets (ROA), while NEFT and WEBPAY have a positive but non-significant effect. A long-run relationship between cashless policy and ROA was also observed. The study concludes that ATM and POS services boost bank profitability and recommends prioritizing improvements in these channels.
Full-Text Access Notice
In accordance with the NERD Policy on promoting peer-reviewed publication, public access to the full text of a project, thesis or dissertation is restricted for three years, allowing the author and supervisors sufficient time to pursue peer-reviewed publication.
During this period, researchers with legitimate academic or research purposes may request authorisation directly from the author to enable NERD to release the indexed full texts of the work using the form below.