Treasury Management Strategies And Bank Performance: A Retrospective Study Of First Bank Of Nigeria (original) (raw)
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Analysis of the Impact of Treasury Single Account on the Performance of Banks in Nigeria
Open Journal of Statistics, 2018
In this study, we developed multivariate model for the study of the impact of treasury single account (TSA) on the performance of banks in Nigeria. From the study, we discovered that there was no significant difference between the period before and after the introduction of the TSA policy on the performance of banks in Nigeria. In Diamond Bank Nigeria Plc, we observed that there were negative relationships between liquidity ratio and capital adequacy with correlation coefficient of −0.093; liquidity ratio and credit to customers with correlation coefficient of −0.312; capital adequacy and credit to customers with correlation coefficient of −0.176. On the other hand, from the analysis on first bank, we observed that there were both positive and fairly strong relationships between the liquidity ratio and capital adequacy with correlation coefficient of 0.626; negative relationship between liquidity ratio and credit to customers with correlation coefficient of −0.880 and finally, negative relationship between capital adequacy and credit to customers with correlation coefficient of −0.165.
Effects of Treasury Single Account on Performance and Survival of Deposit Money Banks in Nigeria
The International Journal of Management, 2016
Treasury Single Account policy is a financial reform policy of the Federal Government of Nigeria introduced in 2015 to curb corruption that has eaten deep into the Nigerian Society, ensure accountability and transparency in all government finances. It is a government banking arrangements aimed at managing and controlling government's cash resources. As interesting as this may sound it has its implications on the financial sectors mainly the banks which are the heartbeat and the engine of growth in any developing economy. This research specifically examines the effect of treasury single account policy on the performance of banks and their survival in Nigeria. The objective of this research is to examine the effect of the policy on banks performance and survival. Secondary data had been employed. The populations of this study are deposit money banks in Nigeria using a sample of 6 banks financial statement for one year through judgment sampling. The data were analyzed using the pai...
EFFECT OF CAPITAL ADEQUACY ON THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
International Journal of Novel Research in Marketing Management and Economics, 2023
The study reviews the effect of capital adequacy on the performance of Nigerian deposit money banks for the period of 2000-2020. The objective of this study is to examine how capital adequacy has helped deposit money banks achieve an efficient performance. This study adopts an ex-post facto research design, and the sample size is all deposit money banks with international and national authorization in Nigeria. The data used are mainly secondary data collected from the audited annual publications financial statements of all the deposit money banks listed on the Nigerian Stock Exchange. The study employed ordinary least square multiple regression (OLS), descriptive statistical analysis, in addition to E-view electronic packages. According to empirical results at 5% level of significance, findings show that total capital to risk weighted assets, banks capitalization to total credits, and debt to equity ratio (the independent variables to capital adequacy) had direct and inverse linear significant effect on return on assets (dependent variable to performance) of deposit money banks in Nigeria. The study concludes that capital adequacy, one of the key factors affecting the performance of the Nigeria deposit money banks in measuring efficient performance of financial institutions in Nigeria has both direct and inverse linear relationship with efficient performance of banks, therefore, recommends that the Central Bank of Nigeria should effectively regulate the capital and the resources owned by the deposit money banks (DMBs) in Nigeria to globally acceptable standard since the current ₦25 billion and ₦50 billion minimum capital-base requirements cannot justify the banking reality of nowadays. This will help to enhance investment planning, decision making within the financial system and early prevention of systemic bank distress.
IOSR Journal of Economics and Finance
Treasury management has been and still is a global concern not only in formal corporate world but also in informal financial sector. In Financial institutions, treasury management is about the aspect of risk management by measuring it, controlling it, diversifying it and hedging it. Risk taking is the heart of every financial institution and it is the conscious engagement in risk that constitutes the economic value of financial intermediation. Treasury risk management therefore refers to the process of identifying a suitable trade-off between risks and return in order to maximize the existing opportunities in a society's operational environment. The advent of regulation in the SACCO sector and the development of commercially autonomous member-based cooperative organizations which are democratically and professionally managed, self-controlled and selfreliant business enterprises means that Cooperative societies can now compete with other business enterprises for the financial business market share. The researcher therefore sought to establish whether licensed deposit taking SACCO societies have adopted the practice of treasury risk management and how this has affected their financial performance. To establish this, the researcher adopted a survey study since it describes in-depth the nature of the phenomenon and examines actions as they happen rather than manipulation of the variables. The research targeted Internal Auditors, Banking/Fosa managers, Finance Managers and Risk managers of licensed deposit taking SACCO societies operating within Nakuru County selected using simple random sampling method to achieve a response level of at least 30%.Data was collected using questionnaires which were tested for validity and reliability. The research findings revealed that not all SACCOs have implemented treasury risk management practices in their treasury operations thus some had not identified the specific risks facing their treasury operations. The collected data was analyzed and tested using t-test on SSPSS version 20. The analyzed dataconfirmed that the implementation of treasury risk management practices has an effect on the regulatory compliance of some selected financial ratios and the financial performance of SACCO Societies.
Nigeria Journal of Management Science, 2019
Treasury Single Account policy is a financial reform policy of the Federal Government of Nigeria introduced in 2015 to curb corruption that has eaten deep into the Nigerian Society, ensure accountability and transparency in all T government finances. It is a government banking arrangements aimed at managing and controlling government's cash resources. As interesting as this may sound it has its implications on the financial sectors mainly the banks which are the heartbeat and the engine of growth in any developing economy. This research specifically examines the effect of treasury single account policy on the performance of banks and their survival in Nigeria. The objective of this research is to examine the effect of the policy on banks performance and survival. Secondary data had been employed. The populations of this study are deposit money banks in Nigeria using a sample of 6 banks financial statement for one year through judgment sampling. The data were analyzed using the paired sample t-test analysis techniques and percentages. The result of this research shows that adoption of a Treasury Single Account (TSA) does not affect banks performance and survival using the two widely used measure of banks performance, the Return on Asset ROA and the Net Interest Margin NIM and measures of survival: the total assets, total deposit, loans and advances profit and before tax. Thus, the researchers recommend that for the banks to sustain this performance, it must redefine the nature of competition, diversify economically and refocus on the original purposes for which they were set up-to collect depositors' funds (not necessarily government funds), keep them safe; engage in intermediation to create wealth and jobs for the economy and in the process earn profit for themselves.
Asset Liability Management and Deposit Money Banks Performance in Nigeria
Using aggregated data, the study looked into the impact of asset-liability management on banking performance. The investigation was conducted from the year 2000 to the year 2020. Bank loans and advances, aggregate bank deposits, loan-todeposit ratio, non-performing loan, and bank size are among the asset-liability management proxies that are taken into account. Meanwhile, the aggregate return on equity was used to assess bank performance. The study's data came from the Statistical Bulletin 2020 of the Central Bank of Nigeria. Using Econometric Views (E-Views) version 9.0, the researchers used the ARDL short and long run estimate technique. According to the study, bank loans and advances, aggregate bank deposits, and the loan-to-deposit ratio have a favorable short-and long-term impact on bank performance. In the long term, however, bank size did not sustain our short run negative sign, reporting a positive coefficient instead. Finally, non-performing loans have a detrimental long-term and short-term impact on bank performance. As a result, we argue that asset-liability management induces both at the aggregate and individual levels, with aggregate bank deposit and non-performing loan being the only important determinants of bank performance. As a result, we urge that bank management focus more on aggressive deposit mobilization approach in order to support improved asset-liability management. Non-performing loan monitoring, in particular, requires extra care.
The Capital Structure is the combination of debt, equity and other sources of finance that it used by firms and other institutions to fund its long term asset. The general objective of the study is to investigate the determinants of capital structure of Deposit money banks in Nigeria. This study adopted a descriptive survey design. The target population of the study comprises all the listed Deposit money banks on the Nigerian Stock Exchange as at 2019. The study used secondary source of data only. Multiple regressions were used to analyze and statistically find the determinants of capital structure of listed Deposit money banks. The data for the study is panel in nature (that is cross-sectional time-series data). The regression runs in a panel manner; as such, various options of panel data regression (generalized Least Square) was run, like, random effect GLS regression and fixed effect (within) regression as well as panel data robustness tests. This study examines the determinants of capital structure of Banks in Nigeria, it concludes that capital structure can be said to be a pivot upon which all banking activity revolve, and if well determined, will support the bank in its operation by providing a buffer to absorb unanticipated loses from it activity. The study found among other things that the main determinant factors which contribute to the bank leverage level of the Banking Industry in Nigeria between the years 2008 to 2019 are mainly bank size, growth, age, tangible assets, return on investment and interest rate.
Risk Management and Financial Performance of Listed Deposit Money Banks in Nigeria
The International Journal of Business & Management, 2019
The study examined the effect of risk management on the financial performance of Deposit Money Banks in Nigeria. The study employed ex-post-facto research design. The study population consisted of 26 DMBs from which 10 were selected using purposive sampling technique. Secondary data were collected from financial statements. Panel data regression was used to estimate the parameter coefficients. Findings revealed that Debt Equity Ratio, Asset Liability Maturity Mismatch and Capital Adequacy Ratios had significant negative, positive and negative effects on Return on Assets respectively. Loan Deposit Ratio and Type of Auditor had significant negative and positive effects on Return on Equity respectively. Also, Interbank Funding Ratio had significant positive effect on Return on Equity. Risk Asset Portfolio of the DMBs was reasonably diversified with diversification index above 0.6. Capital adequacy ratio of the DMBs averaged 0.22. The study concluded that the effective risk management among the DMBs impacted their financial performance positively. The study recommended that DMBs should determine their optimum loan-deposit mix as well as pay special attention to their balance sheet mismatch to determine the most appropriate bounds of tenors between deposit and risk assets. Also, the Central Bank of Nigeria should bring down the cash reserve ratio that restricts credit creation and causes high cost of funds. The Central Bank of Nigeria should also pay interest rate on cash reserves held by the bank.
This study investigates the impact of bank capital adequacy ratios, management and performance in the Nigerian commercial bank (1986-2006). The objectives of this paper are: to determine to what extent bank capital adequacy ratios impact on bank performance and also to investigate the extent to which operation expenses has impacted on the return on capital. The study captured their performance indicators and employed cross sectional and time series of bank data obtained from Central Bank of Nigeria (CBN) and Annual Report and Financial statements of the sampled banks. The formulated models were estimated using ordinary least square regression method. The overall capital adequacy ratios of the study shows that Shareholders Fund/Total Assets (SHF/TA) which measures capital adequacy of banks (risk of default) have negative impact on ROA. The efficiency of management measured by operating expenses indice is negatively related to return on capital. The implication of this study, among others, is that adequate shareholders fund can serve as a veritable stimulant in strengthening the performance of Nigerian commercial banks and also heighten the confidence of customers especially in this era of global economic melt-down that has taken its toll in the Nigerian financial system. Key words: Buffer capital theory of capital adequacy, Expense theory, Capital adequacy ratios
JOURNAL OF ECONOMICS, FINANCE AND MANAGEMENT STUDIES
This study looks at how risk management affects Nigeria's publicly listed deposit money institutions' financial performance (DMBs). The 10 commercial banks in Nigeria with licenses are being researched. The data used spans 12 years from 2009 to 2020 and is secondary data. The Hausman test was chosen because it suggests that a random effect model should be employed for the analysis of the panel data utilized in this study. It was determined that there is a statistically significant association between net interest margin (NIM), credit risk management (CRM), liquidity risk management (LRM), and interest rate risk management (INTRM) using the ordinary least square random effect regression model. More specifically, credit and interest rate risk management have a significant negative impact on the profitability of Nigeria's listed deposit money banks, suggesting that an increase in risk management variables will result in a decline in the financial performance of Nigeria'...