Abstract:

This study investigates the relationship between liquidity management and the profitability of Banks in Nigeria over the period 2007-2017.  The study examined the liquidity-profitability trade-off of ten banks using panel regression. The empirical results revealed that liquidity management positively influences the operations of deposit money banks. This implies that liquidity management of DMBs have no significant impact on the returns on their assets and returns to their equity’s shareholders. There is therefore the need for banks to balance the trade-off between their liquidity management and profitability; this is because excess liquidity reduces profitability while excessive illiquidity exposes DMBs to insolvency..