ABSTRACT
This work is a revisit on the
impact of the liquidity management on the profitability of banks in Nigeria.
The work desires to determine the relationship that exists between the net
working capital of deposit money banks and their profitability. An attempt was
also made to see if the banks meet up with the Liquidity Reserve Requirement
(LRR) of 30% by the Central Bank of Nigeria If not, whether the difference is
significant or not, and then the penalty for default. The work similarly
attempts to see if the marketable securities of banks form a major part of
their current assets. In a bid to do this, secondary data (the audited five
year —financial statements .of the six banks) were collected. From the analysis
carried out using the correlation analysis and the Z test statistic(using a 5%
level of significance) which shows that the relationship existing between the
working capital of banks and its profitability is not significant, similarly
that that marketable securities of banks do not form a major proportion of its
current assets and finally that there is a significant difference existing
between the Liquidity requirement of the CBN and that of the banks, I therefore
recommend that the banks should manage their liquidity properly so as to enhance
their profitability, invest excess cash in securities and try to meet up with
and not exceed the Liquidity Reserve Requirement of the Central Bank of Nigeria
(CBN).
EZEUDOYE, C (2021). Analysis Of The Impact Of Liquidity Management On The Profitability Of Deposit Money Banks In Nigeria.. Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/analysis-of-the-impact-of-liquidity-management-on-the-profitability-of-deposit-money-banks-in-nigeria-7-2
C., EZEUDOYE. "Analysis Of The Impact Of Liquidity Management On The Profitability Of Deposit Money Banks In Nigeria." Mouau.afribary.org. Mouau.afribary.org, 05 Jul. 2021, https://repository.mouau.edu.ng/work/view/analysis-of-the-impact-of-liquidity-management-on-the-profitability-of-deposit-money-banks-in-nigeria-7-2. Accessed 01 Nov. 2024.
C., EZEUDOYE. "Analysis Of The Impact Of Liquidity Management On The Profitability Of Deposit Money Banks In Nigeria.". Mouau.afribary.org, Mouau.afribary.org, 05 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/analysis-of-the-impact-of-liquidity-management-on-the-profitability-of-deposit-money-banks-in-nigeria-7-2 >.
C., EZEUDOYE. "Analysis Of The Impact Of Liquidity Management On The Profitability Of Deposit Money Banks In Nigeria." Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/analysis-of-the-impact-of-liquidity-management-on-the-profitability-of-deposit-money-banks-in-nigeria-7-2