Treasury Single Account and the Performance of Banking Sector: A Study of Selected Deposit Money Banks in Oyo State, Nigeria

The banking sector in any country plays a fundamental role in increasing the level of economic activity. However, the implementation of treasury single account has been devilled its performance. This study therefore investigates the implication of treasury single account on the performance of Nigerian Deposit Money Banks. Quantitative analysis was used in this research, with data collected by the researchers. Five banks (Zenith Bank, First Bank Plc, UBA, Access Bank and Guaranty Trust Bank) were selected through purposive method. Judgmental sampling technique was also used to select Head of Operation, Accountant and Branch Manager from 10 branches each of the selected bank in Oyo State, Nigeria, totaling 150 respondents as a sample size for the study. Data collection instrument used was a structured questionnaire and data analysis was performed with the aid of Ordinary Least Square method of estimation. Result shows that implementation of Treasury Single Account has significant relationship with closure of branches, withdrawal syndrome from the banking system, liquidity crisis and unemployment crisis in Deposit Money Banks. Subsequently, the study recommends that banks should focus on their core banking operations rather than feeding on government idle funds kept into various accounts by Government Ministries, Departments and Agencies (MDAs). Also, banks should sensitize people on the importance of baking culture instead of them keeping their money under their pillow, inside their farms and underground.