ABSTACT

The research work study focuses on the comparative study of an impact o/ liquid/tv management and it performance on financial institution. It begins with the examination of background of study, which reveals the management problem, and jbcus that necessitates the research study. The objective of the study and outline, which led to the Jrmulation oft/ic research hypothesis: the significance of siva,v was also enumerated. It also revealed the opinions and views of experts and comparing the results of the study with the exact views of the experts and praclitionerv. The rev care/i methodology was examined by describing the techniques and procedures user! in the research. The dcita were sourced cind obtained through secondary data and analyser! by the mecmns of correlation analysis through the use of simple regression analysis. Some of the findings of the study are: the liquidity has a significant impact on the profitability of the /Inancial institution. The relationship shows the coefficient of 0.876 or 87.6% vi'hich indicates a strong relationship. It a/SO shows that liquidity has a significant impact on the return on asset on financial institution. In that case, First Bank of Nigeria should he ccrefiml while investing in asset. The recommendation may include: (a) Bank must make sure it meets up with the permissible range. (b) In managing the liquidity, bank also has to take into consideration on local and national foctors such as types, sources and stability of 4 deposit which are commonly factors fbr the local level. The social political and economic levels of development should he considered. c) Government should take caution of the indiscrimincite use of deficits' financing to ameliorate the problem of liquidity control. It is pertinent that bank ac/here to the various recommendations highlighted above to ensure their maximum of their profitability.