Liquidity management in Financial Institutions in Nigeria

Liquidity management in Financial Institutions in Nigeria

Author by Dr. Tunji Siyanbola

Journal/Publisher: International Journal Of Marketing And Technology

Volume/Edition: 2

Language: English

Pages: 205 - 220

Abstract

This study investigated prospects and problems of liquidity management in financial system in Nigeria. Time series data from 1991 to 2011 was used for data gathering and econometric tool of Ordinary Least Square Linear Regression method was adopted for data analysis. The study revealed that day to day conduct of monetary policy by CBN relies on a theoretical framework which links the operating target to the intermediate target (M2) and to the final objectives of price and output stability; uncertainty remains the major challenge for monetary policy not only in Nigeria, but the world over. The researcher however recommended that monetary authorities must revisit the guidelines on the operation of deposit money banks in Nigeria with a view to trashing out some disturbing elements and widening the scope of activities. Nigerian banks should focus on the development of decision models in treasury and funds management for policy makers and senior management so as to ensure desired goal achievement.


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