Chapter One — 1.1 Background to the Study

Treasury Single Account Policy has increasingly attracted the attention of researchers, regulators, and practitioners concerned with profitability of deposit money banks. This growing interest reflects the recognition that treasury single account policy does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected Microfinance Banks in Nigeria.

Within the context of Selected Microfinance Banks in Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of treasury single account policy on profitability of deposit money banks, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

While treasury single account policy is widely discussed in policy and industry circles, empirical evidence on its actual effect on profitability of deposit money banks within Selected Microfinance Banks in Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to treasury single account policy are helping or hindering profitability of deposit money banks — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Treasury Single Account Policy on profitability of deposit money banks in Selected Microfinance Banks in Nigeria.
2. To assess the extent to which treasury single account policy influences profitability of deposit money banks within the study area.
3. To identify the challenges associated with treasury single account policy in relation to profitability of deposit money banks.
4. To recommend strategies for optimizing treasury single account policy in order to improve profitability of deposit money banks.

1.4 Research Questions

1. What is the effect of treasury single account policy on profitability of deposit money banks in Selected Microfinance Banks in Nigeria?
2. To what extent does treasury single account policy influence profitability of deposit money banks within the study area?
3. What challenges are associated with treasury single account policy in relation to profitability of deposit money banks?
4. What strategies can be adopted to optimize treasury single account policy in order to improve profitability of deposit money banks?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around profitability of deposit money banks. For managers and practitioners within Selected Microfinance Banks in Nigeria, the study provides practical insight into how treasury single account policy can be better managed. Finally, it contributes to the academic literature on finance / banking by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this study confines itself to Selected Microfinance Banks in Nigeria, focusing specifically on how treasury single account policy relates to profitability of deposit money banks within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.