Evaluation Of The Impact Of Liquidity Management On Banks Performance In Nigeria

ABSTRACT  

This study investigated the impact of credit administration on bank performance. The explanatory variables were liquidity ratio, cash reserve ratio, loans-to-deposit ratio and bank loans and advances regressed on bank profitability as the dependent variable. Through the multiple regression models, the four hypotheses were tested out of which two stated in null form were rejected while the remaining two were accepted. The results showed the major findings to include the existence of a significant relationship between all the variables taken together and bank profitability. Also, a significant relationship exists between cash reserve ratio, and loans and advances as explanatory variables and bank profitability. On this premise therefore, some of our recommendations are that banks should not extend credits indiscriminately. Hence, credits must only be given based on good credit rating in order to avoid incidence of non-performing loans.  

KEY WORDS: Liquidity management, profitability, cash reserve, loans and advances, insolvency, macroeconomic determinants, monetary stability.

Overall Rating

0

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

UHAGIRO, L (2021). Evaluation Of The Impact Of Liquidity Management On Banks Performance In Nigeria. Afribary. Retrieved from https://afribary.com/works/evaluation-of-the-impact-of-liquidity-management-on-banks-performance-in-nigeria

MLA 8th

UHAGIRO, LUCKY "Evaluation Of The Impact Of Liquidity Management On Banks Performance In Nigeria" Afribary. Afribary, 27 Apr. 2021, https://afribary.com/works/evaluation-of-the-impact-of-liquidity-management-on-banks-performance-in-nigeria. Accessed 21 Dec. 2024.

MLA7

UHAGIRO, LUCKY . "Evaluation Of The Impact Of Liquidity Management On Banks Performance In Nigeria". Afribary, Afribary, 27 Apr. 2021. Web. 21 Dec. 2024. < https://afribary.com/works/evaluation-of-the-impact-of-liquidity-management-on-banks-performance-in-nigeria >.

Chicago

UHAGIRO, LUCKY . "Evaluation Of The Impact Of Liquidity Management On Banks Performance In Nigeria" Afribary (2021). Accessed December 21, 2024. https://afribary.com/works/evaluation-of-the-impact-of-liquidity-management-on-banks-performance-in-nigeria