Banking Guidelines and Their Implication on Digital Banking Performance in Nigeria

Ikoh; Itoro Moses; Usua; Innocent Sunday; Akpan; Blessing Etim Adiagwai; Jane

doi:10.56201/ijefm.v11.no3.2026.pg143.154

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Banking Guidelines and Their Implication on Digital Banking Performance in Nigeria

Ikoh, Itoro Moses, Usua, Innocent Sunday, Akpan, Blessing Etim Adiagwai, Jane

Abstract

This study investigates the relationship between banking regulatory guidelines on digital banking performance in Nigeria from 2010 to 2023, with emphasis on how key prudential banking guidelines influence mobile banking transactions in Nigeria. Using descriptive statistics and regression analysis, the research examines the impact of Mobile Banking Transactions , Cash Reserve Ratio , Liquidity Ratio (LR), and Capital Adequacy Ratio on banking regulatory guidelines. The descriptive results reveal rapid growth in mobile banking, driven by fintech expansion and mobile penetration, alongside a tightening monetary stance reflected in an average CRR of 20.3%. Regression findings show that MBT has a positive and statistically significant effect on bank banking regulatory guidelines, demonstrating that digital payment adoption enhances efficiency and expands credit capacity. CAR also exerts a positive influence, indicating that well-capitalized banks are more resilient and capable of sustaining lending. Conversely, CRR negatively affects banking regulatory guidelines in consistent with restrictive monetary policy aimed at controlling inflation and liquidity. LR remained stable at 30%, safeguarding depositor confidence but showing limited direct impact on, the Capital Adequacy Ratio exhibits a positive and statistically significant relationship with mobile banking transactions, implying that well-capitalized banks are better positioned to invest in digital technologies and financial innovation. The study concludes that banking regulatory guidelines significantly influence the development of digital banking in Nigeria. While prudential regulations are essential for maintaining financial stability, overly restrictive policies may limit banks’ capacity to invest in technological innovation. The study therefore recommends that regulatory authorities design balanced policies that support both financial stability and digital banking innovation. Additionally, Nigerian banks should strengthen their capital base and promote collaboration with financial technology firms to enhance the expansion and efficiency of digital banking services

Keywords

Digital BankingMobile Banking TransactionsBanking GuidelinesCash Reserve RatioLiquidity RatioCapital Adequacy RatioNigeria.

References

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Banking Guidelines and Their Implication on Digital Banking Performance in Nigeria

Abstract

Keywords

References

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