Effect of Liquidity Management on the Financial Performance of Banks in Nigeria (Published)
This study examines the effect of liquidity management on financial performance of banks in Nigeria for the period 2010 to 2018. The study uses secondary data from five banks listed bank on the stock exchange in Nigeria. The proxies employ for liquidity management are; Liquidity ratio (LQR), Loan to deposit ratio (LDR), Cash reserve ratio (CRR) and deposit ratio (DR), while return on assets (ROA), return on equity (ROE) and return on net interest margin (NIM) are proxies for financial performance (Profitability). The study uses panel regression analysis in estimating the model and Hausman test while making a choice between fixed effect and random effect model. The study finds that liquidity ratio (LQR) have positive and significant effect on financial performance of DMB as measured by return on assets (ROA), return on equity (ROE) and net interest margin(NIM).It therefore recommends that banks in Nigeria should establish sound governance and risk management systems by developing strategies, policies for liquidity management that is well integrated into its risk management practices as well as establish a contingency funding plan to address any liquidity shortfall during periods of stress or emergency while ensuring that active monitoring liquidity funding needs to avert any liquidity challenge that could trigger crisis in the banks is promptly addressed.
Keywords: Banks’, Liquidity Management, Profitability
Customer Relationship Management and Profitability of Money Deposit Banks In Nigeria (2006 – 2015) (Published)
The study investigated the customer relationship management and profitability of money deposit banks in Nigeria from 2006 to 2015. Ten banks out of twenty one functioning banks were selected for the study. The specific objective was to ascertain the extent to which bank CRP affect the TR and PAT. Secondary data employed were from the annual reports from banks published in the NSE website. Multiple regression analysis and student t-test were the statistical tools employed, with the use of SPSS for both data analysis and to test the hypotheses formulated for the study at 5% level of significance. The result indicated that CRP has a significant relationship with the total revenue of banks with little or no impact. Since the impact on TR is not much, its relationship with PAT is not significant while the impact is negative. The study therefore concludes that if banks can give more attention to customer relationship management, the revenue base (income from customers) will have a boost and operating overhead will not absorb all the income. As a result, there will be enough retained profit to pool back (reinvest) into the business.
Keywords: Banks’, Customer Relationship Management, Nigeria, Profit after tax, total revenue
THE ERA OF POST-CONSOLIDATION AND BANKS’ PROFITABILITY IN NIGERIA (2000- 2013): A MULTIVARIATE CO-INTEGRATION ANALYSIS (Review Completed - Accepted)
The paper examined the relationship between the era of post-consolidation and banks’ profitability in Nigeria using data spanning (2000-2013). Secondary data was collected from the CBN statistical and economic and financial review bulletins. Hypotheses were formulated and tested using error correction model (ECM) and the study reveals that the variables are stationary and integrated of order at various levels. There is also long-run equilibrium relationship between the era of post-consolidation and banks’ profitability in Nigeria and the result confirms that about 62% short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicates that about 27% of the variations in banks’ profitability are explained by changes in the era of post-consolidation variables. The study therefore recommends that bank management should strengthen their supervising units in credit administration to avoid the issue of non-performing load. For Nigeria banks to be a major player in domestic and international market, banks capital should be above minimum regulatory requirements at all times. Shareholders’ funds and total assets of banks should be periodically evaluated and aggregate marketing should be vigorously intensified by the banks
Keywords: Banks’, Era, Nigeria, Post-Consolidation, Profitability