The impact of liquidity management on profitability performance of commercial banks in Malaysia / Nur Amira Hamiruddin

• Main Author: Hamiruddin, Nur Amira
• Format: Student Project
• Language: English
• Published: 2016
• Subjects: Liquidity; Special classes of banks and financial institutions
• Online Access: https://ir.uitm.edu.my/id/eprint/81339/1/81339.pdf; https://ir.uitm.edu.my/id/eprint/81339/

There are various types of measurements to calculate or to determine of how well the company or banking institutions utilize their resources to generate profits. Liquidity ratio is one of the important components or measurements to measure of how well the organization manage their liquidity position in order to achieve better performance of the organization. Liquidity is a bank's capabilities to increase in assets and meet both expected and unexpected cash and collateral obligations at reasonable cost and without incurring unacceptable losses. Effective liquidity risk management helps ensure a bank's ability to meet its obligation as they fall due and reduces the probability of an adverse situation developing. This study determines the sound practices for the liquidity risk management in banks. In this study also, will be explained about the liquidity management and the impact of the liquidity management toward the banking profitability. The population of the study consists of ten selected commercial banks in Malaysia and the period of study covered from 2010 to 2014. The data collected is analyzed by using number of basic statistical techniques such as T-test and multiple regression model. The previous researcher recommend that more frequent and monitoring and forecasting on liquidity levels and making more short-term investments can provide gains in profitability.