Impact of Treasury Single Account on the Liquidity

Clementina Kanu

Abstract


The introduction of Treasury Single Account is as a result of numerous corrupt practices that exist in the Country’s public accounting system, lack of transparency and accountability. The paper assesses the positive effect of implementation of TSA on the Economy, the public accounting system and the undesired consequences on the liquidity base and performance of banking sector in Nigeria.  We administered questionnaires to the Management staff of the ten banks selected for the study. We employed Chi-square as a statistical tool for analysis of the data. The results obtained confirmed that the implementation of Treasury Single Account in the public accounting system impacted negatively on the liquidity base and the performance of banking sector in Nigeria. We, therefore 7 recommend that CBN and the Government should come up with an arrangement to address the issue of TSA considering the impact of the activities as the important 9 factor for efficient management, control of government's cash resources as well as sustainability of banks. CBN should go beyond the guidelines and put in place measures to correct any lapses or negative impact of the policy both in the banking sector and the economy at large. The implication of the study is that banks should avoid armchair activities and go   to other source of funds in the economy.  Many people that are denied access to credit facilities, investments and savings opportunity should be encouraged as this will improve the economy and result in sustainable banking sector in the country.

 


Keywords


Treasury Single Account, Banking sector, Banks liquidity base, and performance, Public accounting system, corruption and economy

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References


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DOI: http://dx.doi.org/10.18034/abcjar.v5i1.849

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