Pages: (39-57 )
Abstract
Most Nigerian banks are faced with high non-performing loan ratio which significantly affects their performance and stability. The study examined the effect of Liquidity management on the non-performing loan ratio of deposit money banks listed in Nigeria. The study adopted ex-post facto research design. The population of the study was all the 13 deposit money banks listed in Nigeria for the period 2012 – 2021. 12 deposit money banks were selected purposively based on availability of data. Data were sourced from the annual reports of the deposit money banks selected for the study. Validity and reliability were premised on the statutory audit of the financial statements of the banks, certified by Financial Reporting Council of Nigeria and approved for use by the Central bank of Nigeria. Data were analyzed using descriptive and inferential statistics. The findings revealed that Liquidity management had significant effect on non-performing loan to shareholders fund, and on nonperforming loan ratio to deposit. The study concluded that Liquidity management affect non-performing loan ratio to shareholders' fund. The study recommended that policy makers should pay close attention to its liquidity management policies that will in turn reduce non- performing ratio in deposit money banks.
Keywords: Liquidity management, non-performing loan ratio, performance, stability and Shareholder' Fund,