Description
Abstract
A growing desire by banks for increase in liquidity ratio and profitability are stretching the willingness and capability of banks to meet huge capital needed by customers. To meet this challenge, banks must find viable ways of increasing their resources (Funds) base. This study therefore, focuses on a framework for easing that burden, though maintenance of adequate reserves and other medium. In the study, shows data presentation and analysis of data and also the interpretation of the result. The interpretation enables us to ascertain the relationship between the independent and dependent variables. The Analysis was use to present the positive relationship between liquidity ratio and profitability. The explanatory variables were liquidity ratio, loan and advances regression on bank profitability as the dependent variables. The further result reveals that there is a positive and significant relationship between liquidity ratio and bank profitability (performance), on this premise therefore, some pf our recommendations are that banks should not extend credit rating in order to avoid incidence of non-performing loan, etc.
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