Liquidity Management in the Banking System
Liquidity Management in the Banking System
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Date
1998-07
Authors
BOYI, ALHAJI HAMISU
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Abstract
Community banks, are relatively new concepts in the Nigerian financial system.
They represent the second type of banking institutions in Nigeria. The incessant
collapse of many banks in Nigeria had been caused by their failure to meet their
maturing financial obligations, thus they become bankrupt and unavoidably closed
up due to financial strangulation. This is disheartening!
the genesis of this occurrence is a poor management of liquidity of such banks. It is
against this preposition that this research was undertaken.
The major aim of the research is to evaluate Liquidity management in the banking
system with reference to some selected community banks. The project will seek to
establish the appropriateness of these new banking institutions in meeting their
objectives.
Principally it wants to asses whether or not Nigerian banks understand and
appreciate the importance of prudent management of its cash and marketable
securities and see the extent of such practice. It will equally pin point out
problematic areas and suggest where appropriate solutions that will make the banks
more viable, so as to enable them achieve the objectives for which they were
established.
The sources and collection of data for the study was approached from different
Angles. This includes the use of personal Interview, Questionnaires, Documentation
as published in books, Journals, articles, magazines, financial reports and Business
times, containing Relevant information on the problem under study.
At the end of the work it was discovered that majority of the community banks used
for the study accorded less importance to liquidity management, lnfact, all the
banks reported working without a standard cash and near cash policy. Rather, they
keep their surplus cash in bank deposits than investing them in marketable
securities and other profit yielding businesses
Description
A project submitted to the postgraduate school, Ahmadu Bello
University, Zaria. In partial fulfillment of the requirements for
the award of the degree of Master in Business Administration
(MBA)
AUGUST, 1998
Keywords
Liquidity,, Management,, Banking System