THE IMPACT OF LIQUIDITY MANAGEMENT ON BANKS’ PROFITABILITY: A CASE STUDY OF GUARANTY TRUST BANK BRANCHES IN KANO, KANO STATE

Code: 0B5DDF34C70421  Price: 4,000   60 Pages     Chapter 1-5    6297 Views

THE IMPACT OF LIQUIDITY MANAGEMENT ON BANKS’ PROFITABILITY: A CASE STUDY OF GUARANTY TRUST BANK BRANCHES IN KANO, KANO STATE

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.

CHAPTER 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.

THE IMPACT OF LIQUIDITY MANAGEMENT ON BANKS’ PROFITABILITY: A CASE STUDY OF GUARANTY TRUST BANK BRANCHES IN KANO, KANO STATE


Terms of Use: This is an academic paper. Students should NOT copy our materials word to word, as we DO NOT encourage Plagiarism. Only use as a guide in developing your original research work. Thanks.

Disclaimer: All undertaking works, records, and reports posted on this website, eprojectguide.com are the property/copyright of their individual proprietors. They are for research reference/direction purposes and the works are publicly supported. Do not present another person’s work as your own to maintain a strategic distance from counterfeiting its results. Use it as a guide and not duplicate the work in exactly the same words (verbatim). eprojectguide.com is a vault of exploration works simply like academia.edu, researchgate.net, scribd.com, docsity.com, course hero, and numerous different stages where clients transfer works. The paid membership on eprojectguide.com is a method by which the site is kept up to help Open Education. In the event that you see your work posted here, and you need it to be eliminated/credited, it would be ideal if you call us on +2348064699975 or send us a mail along with the web address linked to the work, to eprojectguide@gmail.com. We will answer to and honor each solicitation. Kindly note notification it might take up to 24 – 48 hours to handle your solicitation.

Material Information
  • ₦4,000.00 1 Price:
  • 60 2 No. of Pages:
  • 5 3 No. of Chapters:
  • No 4 Has Implementation:
FOR ENQUIRIES WE ARE AVAILABLE 24/7

Contact us on

DEPARTMENT
LAW