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Impact of Internet Banking on the Performance of Deposit Money Banks in Nigeria

OKOH, Macdonald Osarhemen, PhD, Erhabor Osaruyi, PhD

Abstract

This study examines the impact of internet banking on bank performance in Nigeria. This study specifically examines the long and short run effect from internet transactions and mobile payment transactions on liquidity ratio of banks in Nigeria. The study adopted ex post facto research design. A monthly time series data fromJanuary 2009 to June 2017was used for the econometric analysis. Johansen Co-integration Test, Vector Error correction model, and Wald test were used to estimate the long and short run effect. Econometrics Views (Eviews) version 8.0 statistical Package was used for the analysis. The study reveals that there is a significant long- run effect from internet transactions and mobile transactions to bank liquidity in Nigeria. Secondly, there is a significant short-run effect from internet transactions to bank liquidity in Nigeria but failed to establish a significant short-run effect from mobile transactions to bank liquidity in Nigeria. The study recommends among other things that banks should intensify effort to update and secure the internet transactions for continuous and improved long term benefits. Moreover, the Nigerian banks should improve the awareness and security of the mobile payment system to encourage user to reliably make payments from the mobile phone.

References

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