Research Article

Bank Specific Factors and Liquidity of Listed Deposit Money Banks in Nigeria

Habiba Adamu1*, Ishaka Alh. Ismaila
1 Department of Accounting, Gombe State University, Gombe
* Corresponding author: habeebaadamu84@gmail.com
Published: Dec, 2022
DOI: 10.67894/bjms.2022.qx0343mx
Pages: 62-76

Abstract

This study examines the Determinants (Bank specific factors) of listed Deposit Money Bank‘s liquidity in Nigeria. The study utilized documentary data collected from annual reports and accounts of the sampled Banks for the periods 2008 to 2018. Data was first analyzed by means of descriptive statistics to provide summary statistics for the variables and subsequently, correlation analysis was carried out using Pearson correlation technique for the correlation between the dependent and independent variables. A panel data regression technique was employed since the data has both time series and cross sectional attributes. It was found that the major determinants that positively and significantly influence the liquidity of the listed Deposit money banks in Nigeria were; Profitability, Capital adequacy and the size of the bank. Thus, based on these findings, the study recommends that listed Deposit money Banks should be more concerned with the internal environment or factors and continue closely monitor their Profitability, Capital adequacy and Size of the bank in formulating strategies to enhance their liquidity position. The Central Bank of Nigeria must critically review and follow-up or monitor the effectiveness of liquidity policy tools in the listed Deposit Money banks and where necessary, appropriate sanctions placed on erring banks to ensure effective implementation of these policy tools in an attempt to achieve desired liquidity.

Keywords

Liquidity profitability capital adequacy and size

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How to Cite

Adamu, H., & Ismaila, I. A. (2022). Bank Specific Factors and Liquidity of Listed Deposit Money Banks in Nigeria. Bayero Journal of Management Sciences, 4(2), 62-76. https://doi.org/10.67894/bjms.2022.qx0343mx

H. Adamu, and I. A. Ismaila, "Bank Specific Factors and Liquidity of Listed Deposit Money Banks in Nigeria," Bayero Journal of Management Sciences, vol. 4, no. 2, pp. 62-76, December 2022. doi: 10.67894/bjms.2022.qx0343mx

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