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Effect of Securitisation on the Liquidity of Financial Institutions in Nigeria

Banking and Finance2025, Undergraduate

This study examined the effect of securitisation on the liquidity of financial institutions in Nigeria. A descriptive survey design was adopted with questionnaires administered to finance executives and asset managers in selected institutions. Data were analysed using descriptive statistics and regression analysis. The findings revealed that securitisation of receivables and loans improved liquidity by converting illiquid assets into tradeable securities, thereby supporting funding and balance sheet management. The study, however, found that regulatory complexity, legal uncertainty, and limited investor appetite constrained the market. It recommends clearer regulatory frameworks and market infrastructure to support securitisation.

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