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

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  • A. O. Adebisi
  • A. S. Ohiani
  • Gbemi Oladipo Olaore

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.

Suggested Citation

  • A. O. Adebisi & A. S. Ohiani & Gbemi Oladipo Olaore, 2019. "Appraising Institutional Environment’s Contribution to Financial Performance of Selected Banks in Pre and Post Tsa in Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(4), pages 12-20, December.
    • Handle: RePEc:khe:scajes:v:5:y:2019:i:4:p:12-20
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    References listed on IDEAS

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    1. Eyup Kadioglu & Niyazi Telceken & Nurcan Ocal, 2017. "Effect of the Asset Quality on the Bank Profitability," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(7), pages 60-68, July.
    2. Rutherford,Malcolm, 1996. "Institutions in Economics," Cambridge Books, Cambridge University Press, number 9780521574471, January.
    3. Matthew O Gidigbi & Manu Donga, 2020. "Impact of Savings on Economic Growth in Africa," The Economics and Finance Letters, Conscientia Beam, vol. 7(2), pages 136-147.
    4. Israel Fainboim Yaker & Sailendra Pattanayak, 2010. "Treasury Single Account: Concept, Design and Implementation Issues," IMF Working Papers 2010/143, International Monetary Fund.
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    More about this item

    Keywords

    TSA; Bank Deposits; Asset Quality; Bank Profitability; Banks and TSA in Nigeria;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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