LIQUIDITY MANAGEMENT IN BANKS

Abstract

The objective of the study was to examine the liquidity management practices of the banks in Ghana using Ecobank and Ghana Commercial Bank as case study. The study also looked into the liquidity and profitability position in order to find out why banks need to be more liquid than any other financial institutions as well as business Organization. The aim is to find the lasting solution to eliminate fund shortages and inability of some banks to provide a required liquid when called upon on emergencies. Regression analysis was the major statistical tool used to analyze the data collected from the rural bank. SPSS software was used for the analysis and Correlation analysis was used to examine the relationship between the rate of profitability and liquidity with respect to asset portfolio management.