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Liquidity risk and bank performance in Nigeria - case study of some selected money deposit banks in Nigeria

 Department: Accountancy  
 By: usericon Iphone6  

 Project ID: 5300
   Rating:  (5.0) votes: 1
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   Price:₦3000
Abstract
The essence of the research is to affirm the effect of liquidity risk and bank performance in Nigeria (a case study of some selected money deposit banks in Nigeria). The study aimed at ascertaining the influence of treasury bills and certificates of deposit on bank performance, to determine if a relationship exists between bank profitability and bank liquidity management, ascertain the influence of cash balances on bank performance and, recommend policy options aimed at resolving the profitability problem of banks. The population study is comprised of three commercial banks operating from the period 2012 to 2017. The research used annual financial statements of the selected financial institutions of Nigeria as secondary data. Liquidity ratio, deposit to asset ratio and capital ratio are the factors that measured liquidity while the profitability variable was measured by return on assets. The research used regression analysis and descriptive statistics to demonstrate the relationship between the two variables. The research results showed that the association linking liquidity and profitability variables in commercial banks of Nigeria was positive over the six years period of study. Recommendations from the study are that commercial banks must have an efficient level between the levels of liquid assets and long-term assets to strengthen each other and maintain sufficient liquidity and ensure profitability in the short and long term period of the bank. CBN should maintain the liquidity requirement and place strong mechanisms to ensure that it is adhered to by the banks. Keyword: Liquidity risk and Bank performance ...
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