THE IMPACT OF LIQUIDITY PROBLEM ON THE NIGERIAN BANKING INDUSTRY. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
This research work is aimed at identifying the impact of liquidity problems on the Nigerian banking sector with regards to their profit and previous made by the Government and the Apex Authority in finding the solution the problem.
In carrying out his study, secondary Data was used extensively. This project work is divided into five chapters:
In chapter one, we have: Introduction, Background of the study, statement of problem, purpose / objectives of the study, significance of the study, scope and limitation and definition of terms.
In chapter two, we have literature review which is made up of liquidity versus profitability in Nigerian Bank, Equilibrium balance between profitability and liquidity ratio-which is further subdivided into; Signifance of liquidity ratio, computation of liquidity ratio, cash ratio, liquidity risks, liquidity preference, liquidity measurement, rational for liquidity ratio measurement. Furthermore, there is factors affecting liquidity of Nigerian banks, Federal Government steps towards solving the liquidity problems in Nigerian banks and finally guidelines for the development of liquidity management policies in Nigerian banks.
Chapter three deals with research design and methodology and also secondary data, it sources, location and method of collection.
Chapter five deals with recommendation and conclusions.
Lastly, there is provision of bibliography.
Liquidity is crucial to the on-going viability of any bank as liquidity can have dramatic and rapid effects on even well capitalized banks.
When a crisis develops in a bank as a result of other problems such as deterioration in asset quality, the time available to the bank to address the problem will be determined by the liquidity therefore, the measurement and management of liquidity are amongst the most activities of banks.