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IMPORTANCE OF LIQUIDITY IN COMMERCIAL BANKS ADEQUACY OR INADEQUACY OF WORKING CAPITAL: ITS IMPORTANCE AND IMPLICATION
TABLE OF CONTENTS
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVE OF STUDY
1.4 SCOPE OF THE STUDY
1.5 LIMITATION OF STUDY
1.6 DEFINITION OF TERMS
CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE
2.1 OPERATIONAL CONCEPTS
2.2 MEASUREMENT OF BAN LIQUIDITY
2.3 PROBLEMS IN COMMERCIAL BANKS
CHAPTER THREE
3.1 SUMMARY OF FINDINGS
3.2 CONCLUSION
3.3 RECOMMENDATION
3.3 BIBLIOGRAPHY
REFERENCE
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Liquidity is the word that bankers use to describe the ability to satisfy demand for cash in exchange for deposit. A bank is considered to be liquid when it has in various forms and locations plus arrestment insecurities that are easily available at a short notice without loss or much loss to the bank, it could be conventional to refers to a bank as being liquid when it has enough liquidity to meet any financial emergency, for instance, during a runoff, the bank have the question of how much liquidity to hold and in what form is of great concern to any prudent bank manager.
Manager are also face with the requirements to comply with liquidity to meet seasonal and unexpected run on bank for cash be anticipated and met in advance from expected each in flow, deposit loan repayment or earnings.
In light of the above, the role of liquidity in our commercial banks becomes all to real its importance cannot therefore be over emphasized liquidity is needed to take advantage of unexpected favourable and profitable opportunity or for aggressive purpose.
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