Liquidity Management and the Performance of Banks in Nigeria (2000-2010)

Abstract

This study examines liquidity management and the performance of banks in Nigeria within the period 2000-2010. It investigates the relationship between the variables of bank performance and those of liquidity management using bank deposit, cash reserve requirement, bank investment, and cash ratio as indicators. Data were mainly collected from CBN’s statistical bulletin. Data were analyzed using simple percentages and simple regression model. Findings indicate that a strong relationship exists between bank deposit and bank reserve requirement, and bank investment and cash ratio. Thus, these finding which has re-echoed results from similar studies re-emphasize the fact that successful operations and survival of banks anchored on efficient and effective liquidity management. Therefore, it is recommended that banks should not concentrate purely on deposits but rather other measures be adopted to reduce liquidity in this sector.

Authors and Affiliations

Francis A. Bassey, Edu G. Tobi, I. Frank Bassey, Raymond Enang Ekwere

Keywords

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  • EP ID EP122855
  • DOI 10.6007/IJARAFMS/v6-i1/1956
  • Views 99
  • Downloads 0

How To Cite

Francis A. Bassey, Edu G. Tobi, I. Frank Bassey, Raymond Enang Ekwere (2016). Liquidity Management and the Performance of Banks in Nigeria (2000-2010). International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), 41-48. https://europub.co.uk/articles/-A-122855