DEPOSIT MONEY BANKS LIQUIDITY MANAGEMENT MEASURES AND CAPITAL FORMATIONS DILEMMA IN NIGERIA.
Abstract
The study investigated liquidity management Measures of banks and capital formations in Nigeria covering the periods 1981 to 2023. Liquidity management was captured using liquidity ratio, loan-to-deposit ratio; treasury bills subscriptions by Deposit Money Banks and savings/deposit rate. Capital formations on the other hand was proxied by gross fixed capital formations (GFCF). Data on these variables were collected from the Central Bank of Nigeria (CBN) statistical bulletin. The Autoregressive Distributed Lag (ardl) approach to cointegration analysis was used to analyse the data. Results from statistical estimations revealed the existence of long run association between liquidity management measures of Deposit Money Banks and capital formations in Nigeria. The study further revealed that, short-run distortions can be significantly corrected in the long-run at the speed of 37.96 %. Based on results, it was advised that existing liquidity management measures adopted by banks should be sustained given its significant effects on capital formations in Nigeria. The said measures should further be deepened for optimum results viz-a-viz capital formations in Nigeria.
This article is available as a PDF download
Published in SALEM JOURNAL OF BUSINESS AND ECONOMY
ISSN: 627-44669
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
EFFECTS OF INDUSTRIAL ABANDONMENT ON THE SOUTH-EAST’S PATH TO STRUCTURAL TRANSFORMATION AND JOB CREATION
ATASIE CHINYERE ODICHE, PhD, ANYANWU GOODNESS NMESOMACHI, IHEMADU MICHAEL CHINAZAM N., PhD
Oct 11, 2026
The strategic conduct and execution of transparent industrial policy provide an essential benchmark ...
View ArticleDISRUPTIVE TECHNOLOGIES ON ORGANIZATIONAL PERFORMANCE OF BREWERY FIRMS IN SOUTH-SOUTH, NIGERIA
UDOIDIONG, ANIEKEME OKON, Prof, G.A. EMEROLE, Prof (Mrs) J.C. IHEMEJE
Aug 4, 2026
The study investigated the effect of disruptive technologies on organizational performance of brewer...
View ArticleENVIROMENTAL ACCOUNTING DISCLOSURE,OPERATIONAL EFFICIENCIES AND FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA.
IBRAHIM ADEYINKA ADERIBIGBE, ADEWUMI ZAID ADEYEMI, OLUWATIMILEYIN ESTHER ADENLE, FATIMAT OLAJIDE
Jul 15, 2026
The study examined environmental accounting disclosure,operational efficiencies and financial perfor...
View Article