Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
Empirical Review of the Impact of Treasury Single Account on Bank Profitability
by Chizoba Nweke, Ugwuanyi, J. E. and Onuoha, K. C.

Abstract:
This study is on the impact of treasury single account on bank profitability. A case study of Union Bank, UBA and Zenith (2015-2021). The specific objectives of the study are to ascertain to examine the effect of liquidity ratio (post-TSA) on deposit money bank profitability in Nigeria, to investigate the effect of capital adequacy ratio (post-TSA) on deposit money bank profitability in Nigeria and to determine the effect of loans (post-TSA) on deposit money bank profitability in Nigeria. The study was mainly underpinned on stakeholder theory. The results revealed that return on assets is influenced by liquidity ratio. The extent of the influence exerted on return on assets by liquidity is significant and positive. It also shows that return on assets is influenced by capital adequacy ratio. The extent of the influence exerted on return on assets by capital adequacy ratio is positive and significant. The study maintains that irrespective of the perceived difficulties created by the introduction of TSA to banks in Nigeria, banks still put up their houses together and maintain a balance in these three parameters. Hence this study concludes that the adoption of treasury single account has enhanced the profitability of banks in Nigeria. Accordingly, the study recommends that deposit money banks should avoid over-reliance of government funds and source for funds from other sectors of the economy.

Keywords: Treasury, Account, Bank, Profitability and Stakeholder

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