IMPACT OF FINANCIAL INCLUSION ON PERFORMANCE OF BANKS IN NIGERIA
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Date
2019-12-31
Authors
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Journal ISSN
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Publisher
A Publication of Departments of Accounting & Finance and Business Administration, Fountain University, Osogbo
Abstract
The re-lunch of financial inclusion in 2012 by the central bank of Nigeria has made Nigerian
banks to embrace several innovative ideas towards providing better quality services to their
customers. These innovations are expected to impact on the performance of the banks as
suggested by theoretical literature. This study is therefore conducted to provide some
empirical explanation on the impact of financial inclusion instruments on performance of
Nigerian banks. Data were collected from World Bank database, Central Bank of Nigeria
Statistical Bulletin, and annual reports of deposit money banks. The data were analysed with
Fixed Effect Regression Model. The Regression analysis was conducted after carrying out the
Breusch-Pagan Lagragian Multiplier (BP-LM) test to determine the suitability of either the
fixed effect or random effect model. The findings revealed positive and significant impact of
Automated Teller Machines, Bank embranchment, and point of sale terminals on bank
performance at both 1% and 5% levels of significance. However, the result on the number of
bank account is not significant. The study concludes that improvement in the quality of
financial services will attract more customers to the bank and boost their performance. It is
thus recommended that more ATMs, POS and Branches be put in place for better inclusive
finance.
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Keywords
Financial Inclusion, Performance, Bank, Nigeria, DMBs
Citation
Jimoh, et al.