IMPACT OF LIQUIDITY MANAGEMENT ON BUSINESS PERFORMANCE IN FIRST BANK PLC, LAFIA. NASARAWA STATE

This study is to examine the Effect of liquidity management on business performance in First Bank Nig. Plc, Lafia. Liquidity management is a major condition of price and foreign exchange control, stability, and economic growth despite establishing regulatory agencies and monetary policies, Nigeria has actually been suffering excess liquidity for the period of time. The major problem of this study is the maintenance of sufficient liquidity and monetary target to permit immediate payments to demand depositors, investment risks that are compatible with safety and ready availability of funds to carry out day to day banking activities or operations has been our paramount interest and the problem of how the Banks in Nigeria manage their assets so as to strike a balance between performances in form of profitability and still have safety liquidity confers. The major objective of the study is to access the significant relationship between liquidity management and business performance in an organization, survey research was used and both qualitative and quantitative (primary and secondary) method of data collection were employed, using a descriptive survey method to analyse the data obtained through questionnaire. Finding from the research reveal that if liquidity of a bank is not managed properly, it could lead to bankruptcy. Liquidity is very essential to the banking industry. It is how the liquidity of a bank is managed that matters not how much liquidity a bank has. There are different techniques a bank decides to manage its liquidity. It all depends on the techniques a bank decides to manage its liquidity and the study recommends that Money in circulation should be reduced to help reduce inflation, a standard should be set for pricing, Interest for loan in banks should be reduced, that is the lending rate and in order to solve exchange rate problem, inflation should be first solved.