THE IMPLICATION OF THE CBN CASHLESS ECONOMY POLICY CHANNELS ON THE PERFORMANCE OF NIGERIAN BANKS

Stephanie M. Chondough
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Stephanie M. Chondough: University of Debrecen, Faculty of Economics and Business, Károly Ihrig Doctoral School of Management and Business, Debrecen, Hungary

SEA - Practical Application of Science, 2021, issue 26, 75-85

Abstract: This study appraised the implications of CBN cashless economy policy on the performance of banks in Nigeria with specific attention on the effect of automated teller machine, point of sale and web-based transaction on earnings per share. Vector error correction model was used to estimate quarterly data collected on the variables from 2010 to 2018. It was deduced from the analyses that automated teller machine, point of sales and web-based transaction had a long-run effect on earnings per share. However, the short-run disequilibrium in the data set was not adjusting towards long-run equilibrium. This implied that the electronic banking transaction modes jointly influence the earnings per share of the Nigerian banking sector but at a very slow rate towards the long run. It is recommended that banks should extend the coverage of ATM terminals to the rural areas to enhance the level of financial inclusion and by extension boost the earnings of their shareholders in Nigeria. Adequate backup infrastructure should be provided to complement the inadequate public infrastructure since internet connectivity is a sine qua non for improved e-banking services.

Keywords: Earnings per share; Cashless policy; Point of sale; Web-based transactions; Automated teller machine; Technology-driven money (search for similar items in EconPapers)
JEL-codes: B22 E58 G20 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cmj:seapas:y:2021:i:25:p:78-85

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