Description
Effect of CBN cashless policy on the performance of deposit money banks in Nigeria.
Abstract
The study examines the effect of cashless policy on the return on equity of deposit money banks’ performance in Nigeria for the period 2010-2020. Secondary data were used and collected from the Central Bank of Nigeria Statistical Bulletin. This study used automated teller machines (ATM), point-of-sale (POS), and mobile banking (MB) as the explanatory variables to measure cashless policy whereas, return on equity of deposit money banks was a proxy for deposit money banks’ performance and employed as the dependent variable. Hypotheses were formulated and tested using Ordinary Least Square (OLS). There is a significant effect of cashless policies on the return on equity of deposit money banks in Nigeria. The coefficient of determination indicates that about 47.61% of the variations in banks’ return on equity can be explained by changes in cashless policy variables ((ATM, POS, MB) in Nigeria. The study concludes that the cashless policy has a significant impact on deposit money banks’ performance in Nigeria. The study recommends that policymakers should ensure the effective deployment of information technology due to its sophistication since the technology with relatively perceived advantage. Policymakers and regulatory authorities should be able to provide security physically and electronically to check the incidence of hacking by fraudsters. The operators should create enlightenment for their customers on the convenience and importance of adopting mobile banking channels in completing their transactions.
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