Cash Flow Optimisation Strategies and Performance of Deposit Money Banks

Cash Flow Optimisation Strategies and Performance of Deposit Money Banks

Author by Dr. Ifayemi Olayinka

Journal/Publisher: Kampala International University Journal Of Social Science

Volume/Edition: 6

Language: English

Pages: 189 - 203

Abstract

Banks encounter varying challenges
in terms of competition which have effect on
their competitive ability in meeting customer
demands. The need to settle every obligation
promptly necessitated the examination of
Deposit Money Banks‘ cash-flow optimisation
strategies and performance. Ex Poste research
design and content analysis of 8 quoted Deposit
Money Banks that published their financial
statements between 2010 and 2018 were used.
Panel regression on STATA analytical tool
revealed that aggregate bank performance (ABP)
indicated by ROE, ROA, Capital Adequacy,
EPS and dividend. 1per cent increase in
customer deposits will yield 57.9per cent
increase in the performance of sampled banks
while 1per cent increase in loans will yield
significant decrease in bank performance.
Overall R-square of the model showed that
36.2per cent variations in bank performance can
be attributed to cash-flow optimisation variable.
This affirms the importance of strategising cashflow
optimisation.


Other Co-Authors