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 from January 2009 to June 2017 was 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.

TABLE OF CONTENTS

Cover page i

Title page ii

Declaration iii

Certification iv

Dedication v

Acknowledgement vi

Table of Contents vii

List of Tables ix

Abstract x

CHAPTER ONE: INTRODUCTION 1

1.1 Background to the Study 1

1.2 Research Problem 2

1.3 Objectives of The Study 5

1.4 Research Question 5

1.5 Hypotheses 5

1.6 Significance of Study 6

1.7 Scope of the Study 6

CHAPTER TWO: LITERATURE REVIEW 7

2.1 Conceptual Framework 7

 2.1.1 Types and Delivery Channels of E-Banking 8

 2.1.2 Benefits of E-Banking 9

2.1.3 Measures of E-Banking and Bank Performance 10

2.1.3.1 Capital Adequacy 11

2.1.3.2 Asset Quality 11

2.1.3.3 Management Quality 12

2.1.3.4 Earning Performance 12

2.1.3.5 Liquidity 12

2.1.3.6 Sensitivity to Market Risk 13

2.2. Theoretical Review 13

2.2.1 Technology Acceptance Theory 14

2.2.2. Theory of Planned Behavior 15

2.2.3. The Theory of Reasoned Action 16

2.3 Empirical Review 17

CHAPTER THREE: RESEARCH METHODOLOGY 24

3.1 Research Design 24

3.2 Area of Study 24

3.3 Nature and Sources of Data 24 

3.4 Model Specification 25

3.5 Description of Variables 26

3.5.1 Dependent variable 26

3.5.2 Independent Variables 26

3.6 Data Analysis Techniques 26

3.6.1 Unit Root Test 26

3.6.2 Co-Integration Test:  27

3.6.3 Vector Error Correction Model 27

3.6.4 Wald Test 27

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND

 INTERPRETATION OF RESULTS 28

4.1 Data Presentation 28

4.2 Descriptive Analysis 28

4.3 Unit Root Test 30

4.4 Inferential Statistics, Hypothesis Testing, and Result Interpretations 30

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND 

RECOMMENDATIONS 40

5.1 Summary of Findings 40

5.2 Conclusion 40

5.3 Recommendations 41

References

Appendix 

LIST OF TABLES

Table 4.1.  Descriptive Statistics of Research Variables 28

Table 4.2.  Result of unit root test                                                                                          30

Table 4.3. Johansen Cointegration Test for Hypothesis One 31

Table 4.4. Co-integration Equation for Hypothesis One 32

Table 4.5. Vector Error Correction Model (VECM) Result for Hypothesis Two 33

Table 4.6.  Wald Test Result for Hypothesis Two 34

Table 4.7. Johansen Cointegration Test for Hypothesis Three 35

Table 4.8. Co-integration Equation for Hypothesis Three 36

Table 4.9. Vector Error Correction Model (VECM) Result for Hypothesis Four 37

Table 4.10. Wald Test Result for Hypothesis Four 3