The Effect of Liquidity Risk Management on Financial Performance of Commercial Banks in Tanzania.

The study assessed the effect of liquidity risk management on financial performance of commercial banks in Tanzania. The study was guided by three research objectives namely: to identify the factors influencing liquidity risks in the commercial banks, to establish relationship between liquidity risk and financial performance, as well as to examine the approaches that the banks use to manage the cash deposit in Tanzania. The study employed descriptive research design whereas simple random sampling procedure was employed to select 111 respondents. Data were obtained through, interview, documentary review and questionnaires. The analysis was conducted using descriptive statistics and inferential analysis to describe the existing relationship between study variables. The study found out that all four study independent variables such as liquidity level, capital adequacy, asset quality and inflation rate are all positive and statistically significant on the dependent variable since p