Appraising Institutional Environment’s Contribution to Financial Performance of Selected Banks in Pre and Post Tsa in Nigeria

A. O. Adebisi (), A. S. Ohiani () and Gbemi Oladipo Olaore ()

Academic Journal of Economic Studies, 2019, vol. 5, issue 4, 12-20

Abstract: Business environment where organizations operate involves forces and factors that can shape the strategic decisions of managers, and this has manifested several times in the banking sector of Nigeria banking sector with the advent of technological change and government policies. The eventual introduction and implementation of Treasury Single Account (TSA) the federal government of Nigeria has no doubt inspired commercial banks in Nigeria to engage in core banking activities that can enhance mobilization of funds and risks management since they are no longer managing the accounts of government agencies. The study was carried out to examine how the unified account system policy has impacted the performance of the selected Nigerian banks. The Five banks selected were based on the current bank ranking in Nigeria as reported by The Banker (2018). Secondary data was employed using six years financials (2012-2017) of the five selected banks representing „Pre and Post TSA? to determine the performance indices of the selected banks regarding growth in bank deposits, asset quality (loan advances), and profitability. he findings revealed that TSA did not have negative impact on the performance indices of the selected banks. Therefore, the study concludes that intuitional environment has positive influence and contribution to the performance indices of the selected banks in Nigeria because the operators are now going into core banking businesses to mobilize fund and as well manage their risk. The study recommends that institutional structure should be more encouraged to curtail the attitude of engaging in non-core banking activities.

Keywords: TSA; Bank Deposits; Asset Quality; Bank Profitability; Banks and TSA in Nigeria (search for similar items in EconPapers)
JEL-codes: G2 G3 (search for similar items in EconPapers)
Date: 2019
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