THE IMPACT OF LIQUIDITY MANAGEMENT ON DEPOSIT MONEY BANKS' PERFORMANCE IN NIGERIA

📄 Project Abstract

The unique role of banks as engine of growth in any economy has been widely acknowledged. Banks occupy central position in the country's financial system and are essential agents in the development process. The intermediation role of banks can be said to be a catalyst for economic growth as investment funds are mobilized from the surplus units in the economy and made available to the deficit units. By intermediating between the surplus and deficit units within an economy, banks mobilize and facilitate efficient allocation of national savings, thereby increasing the quantum of investments and hence national output. Banks as financial intermediaries provide avenue for people to save incomes not expended on consumption. It is from the savings accumulated that they extended credit facilities to the entire economy. To perform their role effectively deposit money banks (DMBs) have to be adequately liquid. This implies that the survival of deposit money banks depends largely on its liquidity,...