THE EFFECTS OF LIQUIDITY RISK MANAGEMENT ON THE FINANCIAL PERFOMANCE OF BAMENDA POLICE CO-OPERATIVE CREDIT UNION (BAPCCUL)

VISEMIH WILLIAM MUFFEE
2020 International journal of social science and economic research  
Liquidity risk management is one of the serious concerns and challenges in the modern era Micro Finance Institutions. Micro Finance Institutions having good asset quality, strong earnings and sufficient capital may fail if they are not maintaining adequate liquidity. Consequently, this study seeks to look for the effects of liquidity risk management on the financial performance of the Bamenda Police Cooperative Credit Union (BAPCCUL). The study adopted Ex post facto research design where data
more » ... s retrieved from the financial statements which were the balance sheet, income statements and notes of BAPCCUL. Ordinary Least Square method of regression was applied to test for the hypothesis which assesses the effects of liquidity risk on financial performance. The results indicated that customer deposits have a positive effect on financial performance of BAPCCUL and so BAPCCUL is encouraged to widen its coverage in the national territory by opening many branches. Also, the amount of cash balances, loans and savings all had positive effects on the financial performance of BAPCCUL according to the outcome of the study. The only variable that portrays a negative effect with net profit was
doi:10.46609/ijsser.2020.v05i05.001 fatcat:5dj6govmzzajnca6txsbc2ixla