THE EFFECT OF TREASURY SINGLE ACCOUNT ON GOINGCONCERN OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The aim of the study was to examine the effect of Treasury Single Account ongoing concern of Deposit Money Banks in Nigeria. However, the significant impact of TSA on the asset quality ratio of DMBs in Nigeria was also examined, the significant impact of TSA on the management quality of DMBs in Nigeria and to determine the significant impact of TSA on the profitability ratio of DMBs in Nigeria and lastly to determine the significant impact of TSA on the liquidity ratio of DMBs in Nigeria. The study made use of secondary data. the study covered the period of eight (8) years (2011 to 2018). The study period was divided into pre-TSA period (2011 – 2015) and post-TSA period (2015-2018). Descriptive statistics was used and the study employed ex-post factor research design. Ex-post factor investigates the possible cause and effect relationship. The result revealed that p-value of 0.895, which is greater than 0.05 hence not significant. This shows that there is no significant impact of TSA on Asset Quality ratios of DMBs in Nigeria at 5% level of significance, no significant impact of TSA on Management Quality at 5% level of significance with p-value of 0.624, which is greater than 0.05 indicating not significant, there is no impact of TSA on Earnings at 5% level of significance with p-value of 0.231, which is greater than 0.05 indicating not significant. To offset the effect of TSA on the liquidity of DMBs, there is need for CBN to increase the working capital of DMBs in Nigeria