LIQUIDITY MANAGEMENT ON PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
LIQUIDITY MANAGEMENT ON PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Summary/Abstract: The study evaluated the effects of liquidity management on bank performance in Nigeria over a 35-year period, from 1986 to 2020. Inferential statistics were used in the investigation, which included the Autoregressive distributed lag model. The Central Bank of Nigeria Statistical Bulletin was used to collect time series data on cash reserve ratio, liquidity ratio, loan to deposit ratio, and return on shareholder's fund. In Nigeria, the study discovered evidence of a long-run association between liquidity management and bank performance. The study also discovered that the cash reserve ratio, liquidity ratio, and loan to deposit ratio all have a favorable and significant impact on bank performance in Nigeria. As a result, liquidity management, as measured by the cash reserve ratio, liquidity ratio, and loan to deposit ratio, has the potential to improve bank performance in Nigeria. According to the findings of the study, liquidity management has a favorable and significant impact on bank performance in Nigeria.

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