Research Article 14
Journal of Finance & Economics Research - Volume 9, Issue 1 2024
By Innocent Chile Nzeh, Emmanuel Chinonye Akalazu, David Ogomegbunam Okolie, Jonathan Ibekwe Okolie
10.20547/jfer2409105
Keywords: E-payment, private sector credit, monetary authorities, banking sector, VAR.

The upsurge in the use of e-payment channels has shaped the activities in the banking sector in diverse ways, and as such has motivated a plethora of research interests. To join the ongoing debate, this study examined the response of credit to the private sector to the rise in the use of e-payment channels in Nigeria. The study used monthly series that covered the period from 2012M12 to 2022M12 under the VAR framework. Findings of the study revealed that credit to the private sector responded positively to shocks in both electronic bills payment and Point of Sale in all the periods under review. On the other hand, its response to shocks in NIBSS instant payment was positive only in period one but thereafter, the response became negative. On grounds of the foregoing, the result of the study strongly suggests that the e-payment channels in Nigeria influence credit to the private sector. The study concludes that the transmission mechanisms through which the e-payment channels impact on credit to the private sector are money supply and bank reserves.

Submission Date: 21 Oct, 2023 Reviews Completed: 16 Jan, 2024
Acceptance Date: 23 Jan, 2024 Publication Date: 28 Jan, 2024