The study was inspired by the liquidity risk that the Nigerian mortgage banking business faces in terms of profitability. As a result, the study investigates the impact of liquidity risk on the profitability of Nigerian mortgage banks. This research effort was carried out using secondary data and an ex post facto research design. The regression statistical technique in the Statistical Package for Social Sciences SPSS Version 22.0 was used to assess data derived from the financial statements of listed mortgage banks on the Nigerian Stock Exchange NSE . The results of the analysis demonstrate that Loan to Deposit has a substantial impact on mortgage banks net interest margins in Nigeria, and that Current Ratio has a significant impact on mortgage banks net interest margins in Nigeria. It was so recommended, among other things, that bank management adopt sound lending policies and maintain a sufficient balance between loans and deposits, because bank profit is largely dependent on deposits mobilized and liquidity created through loans given. Ekwueme, Chizoba M | Onakeke, Newman "Effect of Liquidity Risk on the Profitability of Mortgage Banks in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd46349.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/46349/effect-of-liquidity-risk-on-the-profitability-of-mortgage-banks-in-nigeria/ekwueme-chizoba-m
International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 5 Issue 5, July-August 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD46349 | Volume – 5 | Issue – 5 | Jul-Aug 2021
Page 2339
Effect of Liquidity Risk on the
Profitability of Mortgage Banks in Nigeria
Ekwueme, Chizoba M; Onakeke, Newman
Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
ABSTRACT
The study was inspired by the liquidity risk that the Nigerian
mortgage banking business faces in terms of profitability. As a result,
the study investigates the impact of liquidity risk on the profitability
of Nigerian mortgage banks. This research effort was carried out
using secondary data and an ex-post facto research design. The
regression statistical technique in the Statistical Package for Social
Sciences (SPSS) Version 22.0 was used to assess data derived from
the financial statements of listed mortgage banks on the Nigerian
Stock Exchange (NSE). The results of the analysis demonstrate that
Loan to Deposit has a substantial impact on mortgage banks' net
interest margins in Nigeria, and that Current Ratio has a significant
impact on mortgage banks' net interest margins in Nigeria. It was so
recommended, among other things, that bank management adopt
sound lending policies and maintain a sufficient balance between
loans and deposits, because bank profit is largely dependent on
deposits mobilized and liquidity created through loans given.
KEYWORDS: Liquidity risk, Profitability, Loan to Deposit and cash
ratios
How to cite this paper: Ekwueme,
Chizoba M | Onakeke, Newman "Effect
of Liquidity Risk on the Profitability of
Mortgage Banks in Nigeria" Published
in
International
Journal of Trend in
Scientific Research
and Development
(ijtsrd), ISSN: 2456-
6470, Volume-5 |
Issue-5,
August
2021,
pp.2339-
2352,
URL:
www.ijtsrd.com/papers/ijtsrd46349.pdf
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International Journal