LIQUIDITY RISK AND FINANCIAL PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study examines the effect of liquidity risk management on the financial performance on listed deposit money banks in Nigeria. The scope of the study is limited to Deposit Money Banks in Nigeria covering a period of 17 years (2007-2022). This study uses secondary data and employs the ex-post factor research design. The sample populations of the study vary fundamental sampling techniques stood at 13 quoted deposit money banks in Nigeria then the census was used for the sample size. The data were analysed using ordinary least square econometric technique. The outcomes the research divulge that liquidity risk positively influenced financial performance of listed deposit money banks in Nigeria. This study recommended that the Central Bank of Nigeria should mandate adequate current asset to current ratio is maintained by Deposit Money Banks per time in order to stay afloat.