ABSTRACT

The study was carried out to examine the effect of liquidity management on financial performance of commercial banks in Nigeria (A study of Zenith Bank Plc from 2014 to 2018). The specific objectives were to examine the effect of liquidity management on return on cossets of listed commercial banks in Nigeria, examine the effect of liquidity management on return on equity of listed commercial banks in Nigeria and examine the effect of liquidity management on return on investment of listed commercial banks in Nigeria. The study made used of ex-post facto research design. The study made use of secondary data and adopted inductive and empirical methodological framework. limic/imgs of the study reviewed that that there is a very high relationship between Liquidity Management (LM) and the various dependent variables that is Return on Asset (ROA), Return on Equity (ROE) and Profit after Tax (PAT); liquidity Management has a significant influence on return on asset; liquidity Management has a significant influence on return on equity and finally revealed that Liquidity Management has a significant influence on profit after tax. The study concluded that liquidity is the oil that lubricates the wheel of any business. Its shortage or surplus attracts a variety of risks. The study further recommended that liquidity projection should be capable of directing management attention to areas of greatest needs and impact critical to the banks, banks should consider the establishment of a separate department to cater for or charged with the responsibility of receiving and disbursing cash and keep records thereof financial moo/lager should decide on the proper split of the expected cash balances between actual cash holding and the c/al/v returns for proper accountability.