- The Complete Research Material is averagely 52 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦6,000
Get the complete project »
CHAPTER ONE
INTRODUCTION:
BACKGROUND OF THE STUDY
A bank is considered liquid when it has asset and investment in security that are easily reliable at a short notice without a loose to the bank together with the ability to raise fund from he other source, to enable it to meet its payment obligation and financial commitment in a timely manner. In addition there should be financial commitment buffer to meet almost all financial emergency.
Liquidity management of a commercial bank is a very vital issue in the banking industry. It is the ability of the bank to manage its liquidity position so that neither the liquidity nor the profitable will suffer. For this to be effective, liquidity management must contribute to the achievement of the overall cooperate fund management objectives to attain and maintain a balance of profitability, solvency and liquidity.
Obligation of the maximum liquidity owed by surplus unite can only be archived by holding enviable fund as cash since it has maximum profitability. The must invest all fund on loan and average the highest yielding, and most liquid of the entire asset in the bank.
Banks, because of the important role they play in the economy, particularly in monetary and credit aspect of the economy faces a lot of restriction irrespective of the fact that banks are the most highly and closely regulated of all the business, they still have to operate within the confines of the law and solve the problem of liquidity and profitability dilemma in the economy. Apart form the constraints and the dual role of liquidity and profitability, there is virtually no work on the liquidity management in Nigeria commercial banks. In the light of this, the researcher has decided to discuses this topic based on the analysis of the data collected. The researcher will suggest some solution the problem of liquidity management in the country.
STATEMENT OF THE PROBLEMS
Commercial bank asset management is a never-ending thing of war. This war is pitched between efficient liquidity management on one hand and profitability on the other hand. As Liquidity and profitability are two inherent goals in commercial bank, bank managers will continue to experience the conflict o trying provide efficient mechanism of addressing their bank liquid and hence their safety of necessarily arising from the nature of their liabilities.
A high proportion of commercial bank liabilities are made up of demand deposits (current account fund deposits) saving deposit, fixed deposit and fund from other source. Demand deposit are those bank liabilities that are payable on demand. Necessary commercial bank need to keep only liquid asset to meet a considerably volume of withdrawal. Liquid asset earn little of zero return on asset. It is les risky and the less it likely to yield adequate returns. As such, the high the less risky asset, the more banks is expose to experience a bank run or crisis. At that rate will probably not able to recover all its cost and then also make profit for the owners. But behold. Commercial bank are business oriented firm with their share holder interested on profitability. In other to satisfy its share holders, a bank might be attempted to forget liquidity and pursue profitability by investing on a high yielding less liquid asset that are profitable at the expense of liquidity which is dangerous. It is always necessary to balance liquidity and profitability in order to have efficient bank management.
The ratio or the percentage of idle cash balance in the commercial bank are to hold at any point in time and to what form to hold it is very necessary. While doing that, they should bear in mind the importance of satisfactory level of profit. There are many constraints to bank in achievement of their goal liquidity and profitability such as legal reserve requirement and they should maintain adequate liquidity to meet the unforeseen and seasonal loan demand and fluctuations of deposits. Cash reserves are also needed to take the advantage of unexpected profitability investment opportunities. In effect, banks are constrained and have to walk on a tight rope. There is the never ending of war or what I may refer to as dilemma policy commercial bank management in developing country. The Nigerian case is further aggravated by the inconsistency of the monetary policy as administered by the central bank of Nigeria. Is the reticent of the monetary coups detach. You will just walk up one morning and hear over the radio of via circular No XY2 that the central bank of Nigeria has issued a monetary circular No adjusting the private whether upward or downward.
The federal government directive on withdrawal on all federal parasttatals account from the commercial bank is one of such constraint. The stock stirred up aggressive market in the banking industry.
Although all this stock are necessary to produce the desired control of money in the economy, but such tends to give nightmare to the banking management. This directive causes ripples in the banking industry as such cause more discrepancy in the liquidity position of the commercial bank and subsequently the rate of profitability.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
-
SIMILAR BANKING FINANCE FINAL YEAR PROJECT RESEARCH TOPICS
-
1. AN ANALYSIS OF THE OPERATION OF THE NIGERIAN CAPITAL MARKET (A CASE STUDY OF THE NIGERIAN STOCK EXCHANGE KADUNA BRANCH)
» ABSTRACTThe capital market has an important contribution make in terms of mobilization of savings to profitable self liquidating investment. An analys...Continue Reading »Item Type & Format: Project Material - Ms Word | 57 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT
-
2. IMPACT OF COMPUTERIZATION IN A BANKING INDUSTRY (A CASE STUDY OF UNITED BANK FOR AFRICA)
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY Alvin Tofler, one of the most successful of contemporary popularizes has proclaimed the arrival of an...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT
-
3. THE IMPACT OF FINANCIAL DISTRESS IN BANK ON SMALL AND MEDIUM SCALE BUSINESS (A CASE STUDY OF SELECTED SME’S IN ISOKO NORTH LGA)
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The word “distress” has beamed the cost commonly used word not only in financial syst...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT
-
4. A CRITICAL ANANLISIS OF THE USE OF FINANCIAL REPORT IN ASSESSING BANK PERFORMANCE. (A CASE STUDY UNION BANK OF NIGERIA PLC)
» CHAPTER ONE INTRUDUCTION 1.1 BACKGROUND OF STUDY A farmer, who plants corps, expects result, similarly to student who sits for examination expects res...Continue Reading »Item Type & Format: Project Material - Ms Word | 90 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT
-
5. THE EFFECT OF LOAN MANAGEMENT IN RELATION TO BANK'S PROFITABILITY
» ABSTRACT This study analyzes “the effect of loan management in relation to banks’ profitability” A cases study of First Bank Nigeria Plc Enugu s...Continue Reading »Item Type & Format: Project Material - Ms Word | 50 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT
-
6. THE IMPACT OF EFFECTIVE CUSTOMER RELATIONSHIP ON ORGANIZATIONAL PERFORMANCE (A STUDY OF FIRST BANK NIG. PLC, AKPAKPAVA BRANCH, BENIN CITY)
» ABSTRACT Banking today has become more innovative, competitive and attractive to other investors in the sector. The competitions as a result of high n...Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT
-
7. A STUDY ON THE ACCEPTANCE AND ADOPTION OF THE CBN CASHLES POLICY IN PORT HARCOURT, NIGERIA
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY One of the prerequisites for the development of national economy according to Ajayi et al, 2006 i...Continue Reading »Item Type & Format: Project Material - Ms Word | 76 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT
-
8. THE ROLE OF FINANCIAL INSTITUTIONS IN EXPORT FINACNING IN NIGERIA FROM 2006 – 2012 (A CASE STUDY OF FIRST BANK OF NIGERIA PLC ONITSHA BRANCH)
» CHAPTER ONE THE ROLE OF FINANCIAL INSTITUTIONS IN EXPORT FINANCING IN NIGERIA INTRODUCTION: Financial institutions are organizations which deal basica...Continue Reading »Item Type & Format: Project Material - Ms Word | 61 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT
-
9. THE IMPACT OF BANK DISTRESS ON THE NIGERIA ECONOMY
» ABSTRACT The aim of this research was to investigate the factors that are possible for financial distress in our banking sectors, its impacts on the N...Continue Reading »Item Type & Format: Project Material - Ms Word | 36 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT
-
10. THE IMPACT OF TECHNOLOGICAL ADVANCEMENT AND DEVELOPMENT ON NIGERIA COMMERCIAL BANK (A CASE STUDY OF UBA PLC)
» CHAPTER ONE 1.1 INTRODUCTION The world continues to witness rapid technological changes which directly impacted positively on global economy. The tech...Continue Reading »Item Type & Format: Project Material - Ms Word | 79 pages | Instant Download | Chapter 1-5 | BANKING FINANCE DEPARTMENT