Paradox of cash scarcity in Nigerian Banks: A review of cash supremacy conception

Abstract

This study investigates the effect of cash supremacy concept on cash scarcity in Nigerian banks, this study examines the effect of cash supremacy concept on the profitability of Banks in Edo State. A descriptive survey design was adopted while one hundred and ten copies of Research questionnaire were distributed among Bankers. However, eighty seven copies of the retrieved questionnaires were found relevant to the analysis. The result indicated that cash supremacy concept had positive and statistically significant relationship and effect with profitability of Banks at 0-05 level of significance. The study recommends the need for Nigerian banks to adopt a more balanced approach to cash management strategies, to reconcile cash supremacy paradigm with the reality of cash scarcity in Nigerian Banks.

Keywords: Cash, Supremacy, Scarcity, Reconcile.

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