Impact Of Liquidity Management On The Profitability Of Commercial Banks In Nigeria:- Obiyemi Adekola O

ABSTRACT

The study empirically emphasized the impact of liquidity management on commercial banks profitability in Nigeria using time series data from 1996 to 2015. The dataset sourced from Central Bank ofNigeria Statistical Bulletin was analyzed using multiple regression analysis. The results ofthe analysisrevealed that bank cash assets and treasury bills rate has a negative and significant impact on commercial banks profitability (proxied by return on assets). Also, treasury bills rate was found to have a negative and significant impact on commercial banks profitability. On the other hand, cash reserve to asset ratio was positive and insignificant, while liquidity ratio was positive and insignificant. Based on the findings an efficient management of bank liquidity would not only inure to the benefit ofbanks but also to individuals and business entities and thus the whole economy at large.