IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 9 NO. 2 2024
DOI: https://doi.org/10.56201/ijefm.v9.no2.2024.pg144.162

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Assets and Liability Management and Return on Equity of Quoted Commercial Banks in Nigeria

Dr. Chituru Wike, Dr. Buloh Abelta Kpekpe, Dr. Daniel Ikezam Nwonodi

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Abstract

This study examined the relationship between assets and liability management and return on equity of quoted commercial banks from 2013-2023. Cross sectional data were sourced from annual reports of the quoted commercial banks. Return on equity was proxy for dependent variable while liquidity management, assets management, liability management and credit management were proxies for independent variables. Panel data regression was used as data analysis methods. Findings of the study revealed that the fixed effect model shows that the independent variable explains 89 percent variation on the return on equity. The F-statistics and the F-Probability validates that the model is significant. The beta coefficient showed that all the independent variables have positive effect on return on equity except liquidity management. From the findings, the study conclude that assets and liability management has significant relationship with return on equity of the quoted commercial banks in Nigeria. The study recommends that regular review of asset liability management policies and tools should be done by the bank’s board of directors to ensure that they are in line with market developments in Asset liability management process. Banks management should comply with cash reserve requirements, which help them to avoid insolvency and maintain sustainability profitability.

keywords:

Assets - Liability Management, Return on Equity, Commercial Banks, Nigeria

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References:

Abdul-Rahman, O. A., & A., A. K. (2020). Asset Liability Management and Performance of
Listed Deposit Money Banks in Nigeria. Asian Journal of Economics, Finance and
Management, 2(1), 204-222.

Adegbie, F. F. & Dada, O. T (2018). Risk Assets Management, Liquidity Management and
Sustainable Performance in Nigeria Deposit Money. Banks. Int J Account Res 6, p. 178.
Akani, H. W., & Lucky, A. L., (2016). Capital Structure and Shareholders Value of
Commercial Banks in Nigeria: A Multi-Variate Study Analysis. IIARD International
Journal of Economics and Business Management, 2 (5), 1 – 24.

Alcatara, W. R. (2008). An integrated model for liquidity management and short term assets
allocation in commercial banks, Central Bank of Brasil Working paper Series, 168, 1-
68.

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