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Kwara State University

OLORUNTOBA OYEDELE

Designation: LECTURER 1
Department: Accounting and Finance
My Publications
S/N Title Abstract Authors Volume Numbers Publication Type Publication Date Link
1

Effect of Banking Sector Liquidity Management on Financial Performance of Deposit Money Banks in Nigeria.

Deposit money banks play a critical role in financial intermediation of any growing economy. The adequate liquidity position is required for the banks to be able to perform these roles in an economy. Despite Central Bank of Nigeria 2016 monetary policy reforms in ensuring adequate liquidity position of the Deposit Money Banks in Nigeria, they had continued to experience inadequate liquidity position which had led to their inability to fulfil obligations. This study examines the effect of banking sector liquidity management on performance of Deposit Money Bank in Nigeria. The study employed secondary data. The data obtained were subjected to panel regression analysis. The results reveal that: cash reserve ratio has a significant impact on performance of deposit money banks in Nigeria with coefficient value of 0.25 at 10% significant level; liquidity ratio is a significant determinant of performance of deposit money banks in Nigeria with coefficient value of 0.60 at 5% of significant level, the study concludes that there is a significant relationship between liquidity management and performance of deposit money banks in Nigeria. The study, therefore; recommends that Central Bank of Nigeria should periodically review the cash reserve ratio in line with the state of optimizing asset turnover within acceptance limit by investing in short-term assets including treasury bills thereby building a well-diversified portfolio of short term assets that will generate more income on their assets which will, in turn, enhance the performance of Deposit money banks in Nigeria.
Total Publications : 25