IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 6 NO. 1 2019

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The Impact of Liquidity on Banks Profitability in Nigeria

Obim, E. N., Takon, S. M. & Mgbado, M. U.

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Abstract

The study examined the impact of liquidity on banks profitability. The study sought to examine the impact of liquid assets, bank deposit, and Treasury bills on Return on Asset. Secondary source of data was employed using Central Bank of Nigeria statistical bulletin. Ordinary least square multiple regression techniques was adopted to establish the impact of independent on dependent variables. Based on the results, the following findings were made; there was a positive and insignificant impact between bank deposit and return on asset, there was a negative and insignificant impact between liquid asset and return on asset, there was a positive and insignificant impact between treasury bills and return on asset. The study recommended that appropriate measures should be taken to prevent undesirable market development that may negatively impact on bank deposit. Also, recommended that banks should engage competent and qualified personnel in order to ensure that right decisions are adopted with regard to the optimal level of liquidity

keywords:

Liquid Asset, Bank deposit, Treasury Bills, Return on Asset

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