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The study examined cashless policy and performance of deposit money banks in Nigeria
from 2008-2021.Using descriptive research design and multiple regression, data on
automated teller machine point of sale, mobile banking and point of sales as independent
variable and return on asset as dependent variable were collected from Central Bank of
Nigeria (CBN) statistical bulletin and annual report of selected deposit money banks of
various years. The study revealed that there exist positive and significant relationship
between automated teller machine and mobile banking and return on asset. On the other
hand, point of sales does have negative and insignificant relationship to return on asset.
The study concludes that the positive result of the predictor variables means that it has
the potential to influence total return on asset effectively. The study recommends Nigeria
deposit banks should give more priority to operations and services that will contributes
to return on asset. Again, banks attention should pay more attentions to electronic
banking as it serves as key element of strengthening the competitiveness of the nation’s
economy and productivity.
CHAPTER FOUR
This chapter deals with the presentation and analyses of the results of data
computed in the econometric review tests results. The data presented are
analyzed in accordance with the model formulated and finally the findings
The data for cashless policy and performance of deposit money banks in Nigeria
analysis relates to values for automated teller machine (ATM), mobile banking
(MB), Point of sales (POS) and return on asset (ROA) for the period 2008 to
2021. The source of the data was Central Bank of Nigeria (CBN) statistical
bulletin and Annual report of selected deposit money banks (Union Bank Plc) of
various years.
Table 4.1: Summary of Annualized data on automated teller machine (ATM),
mobile banking (MOB), point of sales (POS) and return on asset (ROA)
selected deposit money bank respectively.
Source: CBN bulletin and annual report of selected deposit money banks of various years.
Sequel to the aforementioned table, cashless policy proxied automated teller
billions from year to year in which automated teller machine have average
value of N272 billions in year 2015 and maximum value of N422 billions in
2021 while the least value was N190 billions in 2010. Mobile banking has a
dynamic value for the period under review with an average of N263 billions
in 2013, with maximum value of N355 billions in 2014, while the least
value was N120 billions in 2015. The table shows that point of sales have
average value of N210 billions in 2012 and recorded her maximum value in
2017 with total of N320 billions, having its least value in N195 billions in
N94,308 billions in the year 2013, while ROA recorded its average value of
N7,507 billions in 2008. The table shows that cashless policy measures
The empirical analysis of data for this research is carried out under the
following:
i. Unit Root Test
ii. Multiple Regression analysis
Unit Root Test
The Augmented Dickey-Fuller (ADF) unit-root test was employed to test for
stationarity or the existence of unit roots in the data. The results of the unit-
The Augmented Dickey Fuller (ADF) unit root test for unit root of variables
is shown in table above. The unit root test results give the test statistics and
critical values at 1%, 5% and 10% level of significance for each variable
tested.
From the table above, the unitary root test for return on asset, automatic teller
machine, mobile banking and point of sales indicates that they are stationary
at first difference. Hence, this study further applied the unit root tests at the
first differences for the four variables. A stationary series was obtained for all
the variables at first difference. This shows the possibility of the existence of
long run relationship between the variables. Thus, we can now proceed to the
second stage of testing for the long run relationship among the chosen
variables.
Equation Estimation Result
fit which is 0.822371. It shows the percentage of the total variations in the
variable.
T-Test: This is used to test the validity of the parameter estimate. In other
significant or not.
therefore used to find out whether the overall parameter is significant or not.
Probability
level. Given a p-value, you can tell at a glance if you reject or accept the
hypothesis that the true coefficient is zero against a two-sided alternative that
it differs from zero. A probability lower than .05 is taken as strong evidence
The beta coefficient representing the relationship between point of sale (POS)
and return on asset (ROA) is -1.007244, while observed t-statistic is -
4.533897 which is insignificant at 5% level (prob. = 0.0370). Given these, we
do not reject the null hypothesis of no significant relationship between POS
and ROA in the short run. More so, the observed relationship is negative and
insignificant following the result which is not in conformity to a priori
expectation.
The earlier formulated hypotheses in this study shall be tested using the
observed beta coefficient and calculated T-statistics for the short run.
Hypothesis one
Ho1: There is no significant relationship between automated teller
machine and return on asset.
From the regression result in table 4.2, the calculated (t-value is 1.052287;
teller machine does have a positive and significant relationship with return on
asset within the period under study and the positive sign is in agreement with
Hypothesis Two
return on asset.
hypothesis and thus conclude that mobile banking does have a positive and
significant relationship with return on asset during the period under study in
the short while. The positive sign is in conformity to the expected a priori.
Hypothesis Three
return on asset.
the null hypothesis and thus conclude that point of sales does have a negative
and insignificant relationship with return on asset during the period under
study in the short while. The negative sign is in disagree with the expected a
priori.
From the E-Views 7 regression analysis carried out and the computed t-
banks in Nigeria.
Nigeria. Based on the above findings, the result shows that two of the
A detailed investigation has been conducted on the study; cashless policy and
performance of deposit money banks in Nigeria for the period 2008 to 2021. The
study analytically indicates that automated teller machine and mobile banking
Notwithstanding, more than a few studies have examined cashless policy and
analysis were electronic mobile and automated teller machine. The study
dependent variable.
performance of Nigerian deposit money banks. The study found that both
mobile banking had a positive and significant with return on asset. He
Andabai and Bina (2019) examined the relationship between point of sale and
return on asset, he used the Ordinary Least Squares (OLS) technique to see
and how point of sales does not significant relationship with return on sale.
5.2 Conclusion
This study has been resourcefully evaluated and cashless policy and
the period 2008-2021. The observed results revealed that automated teller
The study concludes that automated teller machine does have positive and
The study concludes that mobile banking does have positive and
5.3 Recommendations
Nigeria deposit banks should give more priority to operations and services
Source: CBN bulletin and annual report of selected deposit money banks of various years.
Table A: Summary of Unit Root Test results
Variables ADF-Statistic Critical Order of Int.
Value
1% 5% 10%
ROA -5.394077 -2.957110 -0.183246 -2.954021 1(1)
ATM -4.395043 -2.957110 0.056414 -2.954021 1(1)
MOB -4.136575 -2.957110 0.417036 -2.954021 1(1)
POS -5.247791 -2.957110 1.880315 -2.954021 1(1)
Source: Author’s compilation using E-views 7 Output.
Equation Estimation Result