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