EFFECT OF INFORMATION COMMUNICATION TECHNOLOGY ON LIQUIDITY OF BANKS IN NIGERIA

STANLEY IORWUNDU CHIMIN

doi:10.65922/cavyff50

Authors

CHIMIN, STANLEY IORWUNDU College of Private Sector Accounting, ANAN University, Kwall, Plateau State Author

DOI:

https://doi.org/10.65922/cavyff50

Abstract

The study examines the effect of information communication technology on liquidity of banks in Nigeria using time series data of 2012 to 2021 which is gotten from the Central Bank of Nigeria's statistical bulletin. The study relied on the Ex-post facto research design. The Ordinary Least Square regression is used to test the hypotheses stated in the study. From the study findings, it is revealed that, automated teller machine transaction has a positive relationship and significant effect on liquidity ratio of banks in Nigeria. Furthermore, it is fund that, point of sales transaction has a negative relationship and an insignificant effect on liquidity ratio of banks in Nigeria. Lastly, the study result revealed that, Internet/internet transactions has a negative relationship and insignificant effect on liquidity ratio of banks in Nigeria. Thus, the study recommends that, the CBN and banks in Nigeria should ensure that regulations are made to sustain liquidity ratio of the banks and to ensure an effective and efficient ATM operation; where bank customers can continuously make financial transactions without hitches. This will further entrench e-banking practice in Nigeria which will help the banks cut cost of operations. Also, more enlightenment should be done by the banks about internet transactions to enable customers patronize alternative transaction channels as this will further improve the effectiveness and efficiency of customer service delivery by the banks.

Keywords: ICT, Innovation theory, liquidity, deposit money banks.

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Author Biography

CHIMIN, STANLEY IORWUNDU, College of Private Sector Accounting, ANAN University, Kwall, Plateau State

Department of Auditing and Forensic Accounting

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