ABSTRACT

Financial transactions involving the use and movement of physical cash are gradually declining with the introduction of the BSL's Cashless policy. This development has been of great concern to economist, the government of Sierra Leone and financial institutions. This aim of this study is to evaluate financial and economic transactions under the new BSL's cashless policy and how the development has enhanced the financial sector of the economy of Sierra Leone . Concerning methodology, both primary and secondary data were used for the study. Respondents mostly bank employees and customers were issued well design and structured questionnaires to effectively examine the new developments brought about by the introduction of the cashless policy with respect to how financial transactions are being managed and the overall impact the cashless policy has had on the development of the financial sector of the economy of Sierra Leone . Hypotheses were formulated to test assumptions and claims generated from the study. The T-test was employed to test the statistical significance of the estimated parameter at a 5% level of significance. R-squared was used to test the measure of goodness of fit of the models developed for the study.  Moreover, F-statistics was also used to test the joint statistical significance of the explanatory variable and the dependent variable. The study concludes that both cashless technological money i.e e-money and cash currency should be in the economy simultaneously, e-money alone cannot operate successfully in an economy except the few privileged will oppress the majority who are less-priviledged

The development of innovative cashless banking has the potential to transform economic activity and achieve developmental goals. If an effective cashless banking system can be developed and the below recommendations are carried out then it will have desired impact on the Sierra Leone economy. Therefore, trusted central banks and governments must play a key role in promoting the development of popular forms of e-banking channels.

 

TABLE OF CONTENT

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

1.2 Statement of the Problem

1.3 Objectives of the Study

1.4 Research Questions

1.5 Hypotheses of the Study

1.6 Significance of the Study

1.7 Scope of the study

References

CHAPTER TWO

LITERATURE REVIEW

2.0. Introduction

2.1  Conceptual Review 

2.2.1  A Glimpse at Pre-Cashless Policy Era

2.1.2. Conceptualizing Cashless Economy

2.1.3 Cashless Policy and Electronic Payment via E-banking

2.1.4  Type of Electronic Banking

2.1.5  Challenges of Cashless Policy Implementation in Sierra Leone

2.1.6  Prospects of Cashless Policy

2.1.7. Relative Rationale and Impact of a Cashless Economy

2.2. Theoretical Review 

2.2.1  Rogers' Diffusion Theory

2.3 METHODOLIGICAL REVIEW

2.4 EMPIRICAL REVIEW

2.4  Summary of Literature

References

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

3.2 Research Design

3.3 Population

3.4 Sample and Sampling Technique

3.6 Sources of Data

3.7 Instrument for Data Collection

3.8 Data Analysis Technique

References

CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

4.1 Introduction

4.2 Demographic Information of the Respondents

4.3 Analyzing Section B of the Questionnaire

4.4. Analysis of the research Hypothesis   

4.4.1  Data Estimation and Evaluation Techniques

Model Estimation

CHAPTER FIVE

SUMMAY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.0. Introduction

5.1. Summary of Major Findings

5.2.  Conclusion

5.3. Recommendation

5.4. Suggestion for further Studies

BIBLOGRAPHY

Regression Results