ABSTRACT
This study examined the impact of liquidity management on banks profitability in deposit money banks using Guaranty Trust Bank of Nigeria Plc. as a case study. The problem identified in this study is mainly the problem of vibrancy in global financial sector in performing its roles in the growth and development of the economy. This problem arises due to maintaining equilibrium between profitability and liquidity in banking institutions in Nigeria. The primary source of data was used to collect the data while chi-square method was used to analyze the data. The findings indicates that there is a positive relationship between liquidity management and profitability of commercial banks. Based on these findings, the conclusion states that liquidity has great impact on profitability. It is recommended that while commercial banks pursue their profit making objectives, the assets of the bank must be kept at an acceptable level of liquidity so as to meet possible demand from depositors and maintain public confidence at all time. Scholars and technocrats in the banking sector argue that liquidity management should not be the focus of banks but rather risk management, risk management will ensure the bank continues business in a long time. Further research should be conducted on the effect of risk management on the activities of commercial banks in the country.
TABLE OF CONTENTS
ABSTRACT
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypotheses
1.6 Scope and Limitations of the Study
1.7 Significance of the Study
1.8 Definition of Technical Terms
REFERENCES
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Conceptual Framework
2.2.1 Concept of Bank
2.2.2 Concept of Liquidity and Liquidity Management
2.2.3 Liquidity management in Nigeria
2.2.4 Liquidity risk and Bank Performance in Nigeria
2.2.5 Bank Regulations in Nigeria
2.2.6 Element of Bank Liquidity in Nigeria
2.2.7 Effect of Liquidity on Profitability
2.2.8 Solvency versus Liquidity
2.2.9 Bank Assets
2.2.10 Profit Maximization as Goal of Bank Management
2.3 Theoretical Framework
2.3.1 Liquid Assets Theory
2.3.2 Commercial Loan Theory
2.3.3 Shiftability Theory
2.3.4 Anticipated Income Theory
2.3.5 Liability Management Theory
REFERENCES
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Methods/Design
3.3 Population, Sample and Sampling Techniques
3.4 Methods of Data Collection
3.4.1 Administration of the Data Collection Instrument
3.4.2 Reliability of Instrument
3.4.3 Validity of Instrument
3.5 Techniques for Data Analysis
3.5.1 Limitations of the Methods of Analysis
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
4.2 Analysis of Data
4.2.1 Analysis of Section A
4.2.2 Analysis Section B
4.2.3 Analysis Section C
4.2.4 Analysis Section D
4.2.5 Analysis Section E
4.3 Test of Hypotheses
4.3.1 Testing of Hypothesis I
4.3.2 Testing of Hypothesis II
4.3.3 Testing of Hypothesis III
4.4 Discussion of Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Conclusion
5.3 Recommendations
5.4 Suggestions for further studies
Bibliography
APPENDIXCHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The Nigerian economy has undergone fundamental structural changes over the last four decades (1960 to date). Evidence shows that the dramatic structural shifts that occurred lately have not resulted in any appreciable and sustained economic growth and development. Within these periods, the economy has also experienced stunted growth for the greater part of the period. The economy exhibited negative growth rates, which indicates depressed economic situation partly caused by the worldwide economic recession of the early 80s, the world economic meltdown, and recent fall in oil revenue which was as a result of over dependence of the Nigeria economy on oil proceeds, and gross mismanagement of the economy by successive governments (Biaobaku 2014).
According to Awokiyesi (2011), the aim of every economy is the attainment of a healthy and sustainable position, for the critical macro-economic variables, which are the Balance of Payments (BOP), Gross Domestic Product (GDP), Inflation and Unemployment. The pursuits of these goals have become one of the major pre-occupations of policy makers worldwide. This is understandable due to the tremendous impact of developments in Balance of Payments (BOP), Inflation, GDP, Unemployment and social welfare of the society. Generally, the outcomes of these critical macro-economic variables provide a useful guide for appraising the appropriateness of current policy measures designed to bring about a well-ordered economic structure.
The objectives of macro-economic policy for the government of a contemporary mixed capitalist country (like Nigeria) have come to be formulated as the maintenance of high employment levels, without inflation consistently with the achievement of an adequate rate of economic growth, and the preservation of Balance of payments equilibrium. In this context, a major contribution to the theory of economic policy is the Philips curve.
In Nigeria, the realities of the current economic situation have drowned monetary authorities to focus on the framework for sustainable growth, encompassing stabilization as a component of this framework. This conviction is informed by the fact that the country, since the early 1980's, embarked on the stabilization of the economy, when it became apparent that the economic policies of the 1960's and 1970's were no longer of any relevance to the realities of the economy at that time.
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Item Type: Project Material | Size: 69 pages | Chapters: 1-5
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