Liquidity Management and Profitability of Listed Deposit Money Banks in Nigeria

The issue of liquidity management is very vital to the existence and survival of any organization especially the deposit money banks. The policy of maintaining adequate liquidity always to meet customer’s obligation in the banking sector cannot be over- emphasized. Therefore, this study examines the effect of liquidity management on profitability of listed deposit money banks (DMBs) in Nigeria This study employed correlational research design. The design was employed because it enables an assessment into the nature and extent of relationship between two or more variables. The population comprises all the 14 listed DMBs in Nigeria but was reduced to 12 listed DMBs in Nigeria with the application of filtering technique. Panel data were gathered from secondary sources, specifically from the audited and published annual reports of the DMBs from 2007 to 2020. Panel regression research was employed in analyzing the data where profitability was measured by return on assets (ROA). The results indicate that liquidity management has positive but insignificant effect on Return of Assets of selected banks