IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/49062.html
   My bibliography  Save this paper

Information and Communication Technology and Bank Performance in Nigeria: A Panel Data Analysis

Author

Listed:
  • Sani Ibrahim, Mr. Saifullahi
  • Muhammad, Mr. Abubakar

Abstract

This study examines the impact of Information and Communication Technology (ICT) on banks performance in Nigeria using annual panel data set over 2001 to 2011 periods. The data was analysed using panel unit root, panel cointegration, Fully Modified Ordinary Least Square (FMOLS) and Generalised Method of Moments (GMM) to reveals a positive impact of ICT on banks performance in the country. Therefore, the study concludes that cautious application of ICT apparatus will continue to enhance commercial banks performance in the country unless otherwise disrupted by externalities. The implication of this finding exposes the potentiality of cashless economy in Nigeria for strengthening the efficacy of financial system. Accordingly, the Central Bank of Nigeria’ cashless policy is an initiative at the right direction since it will help in minimising the cost of issuing currency in the fairly performing Nigerian economy. We recommend that there is the need for orienting the populace about the benefit of ICT product on banking operation in particular and the economy in general. In order to promote more patronage of ICT equipments on the one hand and enhance banking culture on the other hand, concerted efforts must be made to translate the ICT device language into the major local languages so that client can find it user-friendly at the midst of prevailing high rate of illiteracy in the country .

Suggested Citation

  • Sani Ibrahim, Mr. Saifullahi & Muhammad, Mr. Abubakar, 2013. "Information and Communication Technology and Bank Performance in Nigeria: A Panel Data Analysis," MPRA Paper 49062, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:49062
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/49062/1/MPRA_paper_49062.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Miguel D. Ramirez & Hari Sharma, 2009. "Remittances and Growth in Latin America: A Panel Unit Root and Panel Cointegration Analysis," Estudios Economicos de Desarrollo Internacional, Euro-American Association of Economic Development, vol. 9(1).
    2. Lupi, Claudio, 2011. "Panel-CADF Testing with R: Panel Unit Root Tests Made Easy," Economics & Statistics Discussion Papers esdp11063, University of Molise, Dept. EGSeI.
    3. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    4. Pedroni, Peter, 1999. " Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 653-670, Special I.
    5. Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-652, Special I.
    6. Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April.
    7. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    8. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Bank; financial system panel data; information and communication technology;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:49062. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.