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Liquidity Management And Banks’ Profitability In Nigeria (1989-2013): An Empirical Analysis
Journal of Business Management & Economics
View Archive Info| Field | Value | |
| Title |
Liquidity Management And Banks’ Profitability In Nigeria (1989-2013): An Empirical Analysis
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| Creator |
Jackson Emeka, Ikeora, Joseph; (PhD) Department of Banking and Finance, Chukwuemaka Odumegwu Ojukwu University, Igbariam Campus, Anambra State Werigbelegha, Andabai Priye; Department of Finance and Accountancy, Niger Delta University, Bayelsa State. |
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| Description |
The study examined empirically the relationship between liquidity management and banks’ profitability in Nigeria using time series data spanning (1989-2013). Hypotheses formulated were tested using ordinary least square (OLS) econometrics method. The study reveals that aggregate bank deposit has a positive significant effect with return on asset of banks’ in Nigeria. The study also indicates a positive significant relationship with broad money supply and return on assets of banks’ in Nigeria. The coefficient of determination indicates that about 62% of the variations in banks’ profitability in Nigeria can be explained by changes in liquidity management variables (broad money supply and aggregate bank deposit). Thus, the study recommends that the monetary authority should implement policies that will increase the flow of funds to improves the capacity of banks to extend credit to the economy. Banks should not solely concentrate on the profit maximization concept but should also adopt measures that will ensure effective liquidity management which will help to minimize or avoid cases of excessive liquidity. Banks should schedule the maturity periods of their secondary reserve assets so as to correspond with the period in which the funds will be needed.
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| Publisher |
Journal of Business Management & Economics
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| Contributor |
—
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| Date |
2016-07-31
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://innovativejournal.in/jbme/index.php/jbme/article/view/205
10.15520/jbme.2016.vol4.iss7.205.pp01-05 |
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| Source |
Journal of Business Management & Economics; Vol 4, No 7 (2016); 01-05
2347-5471 10.15520/jbme.2016.vol4.iss7 |
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| Language |
eng
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| Relation |
http://innovativejournal.in/jbme/index.php/jbme/article/view/205/pdf_91
10.15520/jbme.2016.vol4.iss7.205.209 |
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