Chapter one looked into the liquidity and profitability position in order to find out why banks needs to be move liquid than any other financial institutions as well as business Organization. The aim is to final a lasting solution to in eliminate fund shortages and inability of some banks to provide a required liquid when called upon on emergencies.

A significance number of literature relating to the subjects matter were reviewed and in all they agreed that liquidity management in most banks are as a result of fraud and other financial malpractices, it is also noted that some bad depths are as a result of giving loans without requesting for collateral.

Through in hypothesis test II and table 4:1:4 the data analysis and presentation shows that banks strictly select those that mind their vaults or treasury but it does not stop the funds and other malpractices.

The study recommended that banks should keep liquid in excess to solve the problem of inadequacies and delicacies and to close the gap of scarcity of fuels and such like problem and they should relate to other branches and cash centers when ever there is a signal of low centers when ever there is a signal of low liquid by the head of treasury.

It is also agreed that in spite of interest intent being made by banks that Nise community bank should go into foreign exchange services and other related services like treasury bills to promote them profitability.

Finally the researcher concluded that government should intervene in this case so as to authorize community banks in foreign advances and to put to a stop of regulations of CBN over keeping certain amount to eliminate fuel scarcity and such like problems.

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE – INTRODUCTION

1.1 Background of the study

1.2 Statement of problem

1.3 Purpose of the study

1.4 Scope of study

1.5 Research questions

1.6 Research hypothesis

1.7 Significance of the study

1.8 Definition Of Terms

Reference

CHAPTER TWO – REVIEW OF RELATED LITERATURES

2.1 The function of commercial and community Banks

2.2 Commercial and community bank assets and theories of assets management

2.3 Commercial and community banks investment management

2.4 The liquidity approach to commercial and community bank managem

2.5 Theories of bank liquidity management

2.6 Differences and similarities of liquidity management in commercial and community Banks

2.7 The history of union bank plc

2.8 The history of nice community bank

CHAPTER THREE – RESEARCH DESIGN AND METHODOLOGY

3.1 Research design

3.2 Area of the study

3.3 Population of the study

3.4 Sample and sampling procedure / techniques

3.5 Instrument for data collection

3.6 Variation of the instruments

3.7 Reliability of the instruments

3.8 Method of data collection

3.9 Method of data analysis

CHAPTER FOUR – RESENTATION AND ANALYSIS OF DATA

4.1 Presentation & analysis of data

4.2 Testing of hypothesis

4.3 Summary of result

Reference

CHAPTER FIVE – RESEARCH DISCUSSION, RECOMMENDATION AND CONCLUSION

5.1 Discussing of result / findings

5.2 Conclusion

5.3 Implication(s) of research finding.

5.4 Recommendation

5.5 Suggestion for further research

5.6 Limitation of study

Reference

Bibliography

Appendices

CHAPTER ONE

1.0 INSTRODUCTION

1.1 BACKGROUND OF STUDY

A bank is set to be liquid when there is sufficient cast and cash transferable assets including investment in securities that are easily realizable at a short notice without loss to the bank, together with the ability to raise fund quickly from other sources to enable it to meet its payment obligations and financial commitment in a timely manner, but in community a bank security investment is not realizable since they appoint securities individually (i.e. not from an organization concern for provision of security) so security is excluded in liquid of community banks. In addition, there should be sufficient liquidity buffer to meet almost all financial emergencies.

Liquidity management of commercial banks is a very vital issue in the banking industry. It is the ability of the bank to manage it liquidity position so that the liquidity and profitability will not suffer. But for this to be effective, liquidity management must contribute to the achievement of the overall co-operate fund management objectives for attaining and maintaining a balance of profitability, solvency and liquidity.

The obligation of maximum liquidity owed by surplus units can only be achieved by holding all ingestible funds as cash since it has maximum profitability, the bank must invest all funds in loan and overdraft which is considered the average fielding and most liquid of all assets of the banks.