A Perspective on Liquidity and Assets Management of Commercial Banks in Nigeria: Evidence from Some Selected Banks

This paper provides comprehensive analyses and prima facie evidences on determination of liquidity and asset management of selected Nigerian banks. The purpose of this study is to examine liquidity series of Nigerian banks with a view to indicating any weakness noticed. The study considers liquidity buffer of Nigerian banks and finds out how the policy of the Central Bank as a Lender of Last Result (LOLR) may affect banking in the period of liquidity crises. The paper collects time series data from the annual reports of three major banks judging from their size in term of assets, capital base turnover and branch networks. The work employs multiple regressions using Error Correction Mechanisms (ECM) to test the time series properties of proxies of liquidity series employed and possible co-integration among the series through Johansen co-integration tests. The results are diagnosed with a view to eliminating errors that violate the basic tenets of Ordinary Least Square (OLS). Besides Granger Causality tests are employed to determine the direction of causation between the explained and the explanatory variables. The results show prima facie evidences that bank A and B are more liquid than bank C because proxies of liquidity series and Tobi’s q of the banks are significant. 

Subscribe to access this work and thousands more
Overall Rating

0

5 Star
(0)
4 Star
(0)
3 Star
(0)
2 Star
(0)
1 Star
(0)
APA

Nwosu, C., Aremu, A , Polytechnic, F , State, I & , N (2019). A Perspective on Liquidity and Assets Management of Commercial Banks in Nigeria: Evidence from Some Selected Banks. Afribary. Retrieved from https://afribary.com/works/a-perspective-on-liquidity-and-assets-management-of-commercial-banks-in-nigeria-evidence-from-some-selected-banks

MLA 8th

Nwosu, Chukwunwike, et. al. "A Perspective on Liquidity and Assets Management of Commercial Banks in Nigeria: Evidence from Some Selected Banks" Afribary. Afribary, 02 Feb. 2019, https://afribary.com/works/a-perspective-on-liquidity-and-assets-management-of-commercial-banks-in-nigeria-evidence-from-some-selected-banks. Accessed 25 Apr. 2024.

MLA7

Nwosu, Chukwunwike, Akinde Aremu , Federal Polytechnic , Ilaro State and Nigeria� . "A Perspective on Liquidity and Assets Management of Commercial Banks in Nigeria: Evidence from Some Selected Banks". Afribary, Afribary, 02 Feb. 2019. Web. 25 Apr. 2024. < https://afribary.com/works/a-perspective-on-liquidity-and-assets-management-of-commercial-banks-in-nigeria-evidence-from-some-selected-banks >.

Chicago

Nwosu, Chukwunwike, Akinde Aremu , Federal Polytechnic , Ilaro State and Nigeria� . "A Perspective on Liquidity and Assets Management of Commercial Banks in Nigeria: Evidence from Some Selected Banks" Afribary (2019). Accessed April 25, 2024. https://afribary.com/works/a-perspective-on-liquidity-and-assets-management-of-commercial-banks-in-nigeria-evidence-from-some-selected-banks