ABSTRACT
Working Capital management is one of the most aspects of the bank's overall financial
management. Because efficiency in working capital management is necessary for the bank's
long term success and this leads to the achievement of bank's overall objective which is the
maximization of the shareholders' wealth. Working Capital of a Bank represents the
operating liquidity available to run the operations of a bank.
Working Capital management refers to the management of current assets and current
liabilities. It is an important component of corporate finance because it directly affects the
liquidity and profitability of the company. Working capital management is one of the most
important areas while making the liquidity and profitability comparisons among firms
involving the decision of the amount and composition of current assets and the financing of
these assets (Elfelly 2009). For all firms in both developed and developing economies, one of
the fundamental objectives of working capital management is to ensure that they have
sufficient, regular and consistent cash flow to finance their activities. This objective is
particularly increased for deposit money banks.
It has been widely accepted that the profitability of a business concern largely
depends upon the manner in which its working capital is managed (Brigham and Houston
2003). Brigham and Houston emphasize that working capital management involves both
setting working capital policy and carrying out that policy in the day-to-day operations. It
equally involves making appropriate investment decisions in cash, receivables and
inventories as well as the level of short term financing.
CHUKWUEMEKA, I (2021). Effect Of Working Capital Management On Performance Of Deposit Money Banks In Nigeria: A Study Of First Bank Plc And Zenith Bank PLC. Mouau.afribary.org: Retrieved Nov 25, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-and-zenith-bank-plc-7-2
IBE, CHUKWUEMEKA. "Effect Of Working Capital Management On Performance Of Deposit Money Banks In Nigeria: A Study Of First Bank Plc And Zenith Bank PLC" Mouau.afribary.org. Mouau.afribary.org, 10 Jun. 2021, https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-and-zenith-bank-plc-7-2. Accessed 25 Nov. 2024.
IBE, CHUKWUEMEKA. "Effect Of Working Capital Management On Performance Of Deposit Money Banks In Nigeria: A Study Of First Bank Plc And Zenith Bank PLC". Mouau.afribary.org, Mouau.afribary.org, 10 Jun. 2021. Web. 25 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-and-zenith-bank-plc-7-2 >.
IBE, CHUKWUEMEKA. "Effect Of Working Capital Management On Performance Of Deposit Money Banks In Nigeria: A Study Of First Bank Plc And Zenith Bank PLC" Mouau.afribary.org (2021). Accessed 25 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-and-zenith-bank-plc-7-2