EFFECT OF CASHLESS POLICY ON BANKS’ FINANCIAL PERFORMANCE IN NIGERIA: AN EMPIRICAL ASSESSMENT

Abstract

This study examined cash less policy and the financial performance of banks in Nigeria. Time series data for the period 2007 to 2016 for five variables representing about fifty (50) annual observations was generated from the Central Bank of Nigeria Economic Reports and Nigeria Deposit Insurance Corporation Annual Reports. The study used Augmented Dickey Fuller test to determine the stationary state of the variables. It also employs the descriptive statistics and panel least square to analyse the data generated. The empirical findings revealed that cash less policy largely influence the financial performance of banks in Nigeria. The volume of Automated Teller Machine (ATMVL) and Point of Sales (POSVL) were found to increased banks financial performance though not statistically significant. The study recommends that more ATM centres be opened by banks through the influence of the Central Bank of Nigeria in order to enhance the success of the cash less policy.