ASSETS AND LIABILITIES MANAGEMENT AND GROWTH OF DEPOSIT MONEY BANKS IN NIGERIA
Considering the need for banks to remain liquid and profitable without jeopardizing the interests of stakeholders, the study was carried out to assess the implications of assets and liabilities management on the growth of banks in Nigeria. The study covered a period of 40 years. Ex-post facto research design was adopted in the study. Selected assets and liabilities variables were used in the study. For bank assets variables, they all exhibited a positive and statistically significant relationship with the explained variable (growth rate of banks’ total assets) when managed separately. Also, all liabilities variables exhibited positive and statistically significant relationship with the explained variable. Dissimilarly, when both assets and liabilities variables are managed together, banks’ reserve – an asset variable, and banks’ savings deposits – a liability variable, showed non-significant relationship with the explained variable. On the whole, none of the variables exhibited a negative relationship with the explained variable either separately or jointly. This clearly implies that both assets and liabilities are needed to drive growth in banks. Banks are encouraged to increase efforts on creation of assets and mobilization of liabilities.
Keywords: Banks assets management, banks liabilities management, and growth of banks
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