Effect of Asset and Liability Management on the Profitability of Nigerian Banks

Banking and Finance — 2025, Undergraduate

This study assessed the effect of asset and liability management on the profitability of Nigerian banks. Financial statement data of selected banks were analysed together with questionnaire responses from treasury managers. Data were analysed using ratio analysis and regression techniques. The findings revealed that efficient matching of assets and liabilities, prudent liquidity buffers, and management of interest rate risk significantly influenced profitability and solvency. The study found that maturity mismatches and concentration risks remained concerns for some banks. It recommends rigorous asset-liability frameworks, stress testing, and robust liquidity management.

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