Assessment of Money Market Instruments on the Liquidity of Commercial Banks in Nigeria

Banking and Finance — 2025, Undergraduate

This study assessed the influence of money market instruments on the liquidity of commercial banks in Nigeria. A descriptive survey was conducted with treasury and operations officers in selected banks using a structured questionnaire. Data were analysed using descriptive statistics and regression analysis. The findings revealed that treasury bills, certificates of deposit, and interbank placements significantly aided liquidity management and income generation for banks. However, interest rate volatility and regulatory changes affected instrument pricing and effectiveness. The study recommends prudent portfolio management and enhanced utilisation of money market instruments for liquidity planning.

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