Nkwodimmah, Pascal and Ochei, Ailemen I. (2019) FINANCIAL TECHNOLOGY AND LIQUIDITY IN THE NIGERIAN BANKING SECTOR. JOURNAL OF ASSOCIATION OF PROFESSIONAL BANKERS IN EDUCATION, 5 (1). pp. 243-262.
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Abstract
In recent times, financial technology advancement has been growing in volume of transactions. The increasingly used payment system has prompted concern on the long run impact of electronic payment on liquidity of the Nigerian banking sector. The study investigated impact of financial technology on the liquidity of the Nigerian banking sector. A case study research design was used to determine relationship existing between electronic payment services and banking sector liquidity in Nigeria. The study covered nine years period, using quarterly data spanning from the first quarter of 2009 to the fourth quarter of 2017. Secondary data was also collected in order to estimate the model. The dependent variable was proxied by loan to deposit ratio while the independent variables was proxied by automated teller machine, point of sales, mobile payment and automated clearing system-cheque. A unit root test was employed as a pre-estimation technique for this study, hence the variables where stationary at first difference. The study employed the Auto Regressive Distributed Lag or Bounds test approach in order to establish the short run dynamics and long run relationship of the model. Findings from the study suggested that there was a notable impact of electronic payment (fin-tech) on liquidity among all Deposit Money banks in Nigeria. Due to this finding the study concluded that an e-system in the banking sector will bring about financial development. Deposit Money banks should be encouraged to adopt electronic payment systems so as to have a better banking experience, easy access to banking products, reduced cost and flexibility of online international transactions.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Electronic Payment System, Deposit money banks, Auto Regressive Distributed Lag, Bounds test approach |
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Mrs Patricia Nwokealisi |
| Date Deposited: | 07 Jul 2020 11:06 |
| Last Modified: | 07 Jul 2020 11:06 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/13457 |
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