Home > Finance, Bank Management > Vol 1 No 1 June 2013 Abstract 4
The Impact of Liquidity Management on the Profitability of Banks in Nigeria
Sunny Obilor Ibe
Journal of Finance and Bank Management, 1(1), pp. 37-48.

Abstract
This work investigated the impact of liquidity management on the profitability of banks in Nigeria. The work is necessitated by the need to find solution to liquidity management problem in Nigerian banking industry. Three banks were randomly chosen to represent the entire banking industry in Nigeria. The proxies for liquidity management include cash and short term fund, bank balances and treasury bills and certificates, while profit after tax was the proxy for profitability. Elliot Rothenberg Stock (ERS) stationary test model was used to test the run association of the variables under study while regression analysis was used to test the hypothesis. The result of this study has shown that liquidity management is indeed a crucial problem in the Nigerian banking industry. The study therefore recommends that banks should engage competent and qualified personnel in order to ensure that right decisions are adopted especially with the optimal level of liquidity and still maximize profit.

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Ibe, Obilor Sunny. (2013). The Impact of Liquidity Management on the Profitability of Banks in Nigeria. Journal of Finance and Bank Management, 1(1), pp. 37-48.

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Sunny Obilor Ibe is a PhD. Student in Banking and Finance of Ebonyi State University Abakaliki Ebonyi State Nigeria. He earned an M.Sc. in Financial Management and an MBA in Financial Management from the Federal University of Technology Owerri in Imo State of Nigeria. His first degree is in Economics. Currently, he lectures Statistics and Business Finance in Imo State Polytechnic Umuagwo Ohaji in Imo State Nigeria. He has published three textbooks namely; Basic Statistics, Essentials of Statistical Inference and Elements of Operations Research. He has also published many articles both local and international. He is a member of Nigeria Economic Society (NES). He is also a member of the Chartered Institute of Bankers of Nigeria (CIBN) and of Nigeria Statistical Association (NSA). Mr. Ibe has supervised many graduate projects.