Efficient liquidity management and its impact on profitability of commercial banks in Nigeria

ABSTRACT

The study is a descriptive survey designed to examine efficient liquidity management and its impact on profitability of commercial banks in Nigeria. A total of fifty respondents were selected from First Bank of Nigeria Plc Warri branch in Delta State to form a sample size. A test and retest method was used to determine the reliability of the questionnaire items. The data collected from the field through the administration of questionnaire was organized, using frequency distribution table, simple percentage and non-parametric test of significance known as Chi-Square (X2) was used to test the hypotheses formulated. The findings showed that there is a significant relationship between efficient liquid management and profitability of commercial banks in Nigeria. The study therefore recommends among others that the Central Bank should be encourage maintaining a flexible Minimum Monetary Policy (MPR) or discount rate so as to enable the commercial banks take advantage of the alternative measures of meeting the unexpected withdrawal demands, and reduce the tendency of maintaining excess idle cash at expense of profitability.

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

1.2 Statement of the Problems

1.3 Objective of the Study

1.4 Research Questions

1.5 Statement of hypothesis

1.6 Significance of the study

1.7 Scope and limitation of the study

1.8 Definition of terms

CHAPTER TWO

LITERATURE REVIEWS

2.1 Introduction

2.2.1 The conceptual and nature of liquidity

2.2.2 The Concept of Liquidity Management

2.2.3 Components of Liquidity

2.3 Theories of Liquidity Management

2.3.1 Anticipated Income Theory

2.3.2 Shiftability Theory

2.3.3 Liability Management Theory

2.3.4 Commercial Loan Theory

2.4 The Management of Liquidity in Commercial Banks

2.5 Liquidity Measurement in Commercial Banks

2.6 The importance of liquidity in Commercial Bank

2.7 Management of Liquidity in Nigeria’s Banking Industry

2.7.1 Guidelines for Liquidity Management

CHAPTER THREE

RESEARCH METHODS

3.0 Introduction

3.1 Research Design

3.2 Population of the Study

3.3 Sample Size of the Study

3.4 Sampling Technique

3.5 Research Instrument

3.6 Method of Data Collection

3.7 Validity of Research Instrument

3.8 Reliability of Research Instrument

3.9 Method of Data Analysis

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.0 Introduction

4.1 Presentation and Analysis of Questionnaire Data

4.2 Testing of Hypotheses

CHAPTER FIVE

SUMMARY, CONCLUSION & RECOMMENDATIONS

5.1 Summary of Findings

5.2 Conclusions

5.3 Recommendations

REFERENCE

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APA

B6Oibsr5c000a87429d54.10284207, 9. (2018). Efficient liquidity management and its impact on profitability of commercial banks in Nigeria. Afribary. Retrieved from https://beta.afribary.com/works/efficient-liquidity-management-and-its-impact-on-profitability-of-commercial-banks-in-nigeria-5747

MLA 8th

B6Oibsr5c000a87429d54.10284207, 9jnNVAH5c000a8741eca4.08460391 "Efficient liquidity management and its impact on profitability of commercial banks in Nigeria" Afribary. Afribary, 29 Jan. 2018, https://beta.afribary.com/works/efficient-liquidity-management-and-its-impact-on-profitability-of-commercial-banks-in-nigeria-5747. Accessed 24 Apr. 2025.

MLA7

B6Oibsr5c000a87429d54.10284207, 9jnNVAH5c000a8741eca4.08460391 . "Efficient liquidity management and its impact on profitability of commercial banks in Nigeria". Afribary, Afribary, 29 Jan. 2018. Web. 24 Apr. 2025. < https://beta.afribary.com/works/efficient-liquidity-management-and-its-impact-on-profitability-of-commercial-banks-in-nigeria-5747 >.

Chicago

B6Oibsr5c000a87429d54.10284207, 9jnNVAH5c000a8741eca4.08460391 . "Efficient liquidity management and its impact on profitability of commercial banks in Nigeria" Afribary (2018). Accessed April 24, 2025. https://beta.afribary.com/works/efficient-liquidity-management-and-its-impact-on-profitability-of-commercial-banks-in-nigeria-5747

Efficient liquidity management and its impact on profitability of commercial banks in Nigeria

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