IMPACT OF LIQUIDITY AND WORKING CAPITAL MANAGEMENT ON BANK PERFORMANCE
Received: 19.06.2021; Revised: 28.07.2021, Accepted: 21.09.2021, Published Online: 26.10.2021a
Faculty of Lingaya’s Vidyapeeth
Working capital management that is properly planned and executed is anticipated to contribute favourably to the firm’s profit and subsequently to its wealth maximisation goal. This research aims to examine how liquidity and working capital management affect bank performance. This analysis is divided into two parts: main and secondary findings. This research involves the participation of 100 study subjects. The researchers evaluated the study’s findings using regression tests. According to the research, banks keep highly liquid assets to protect themselves against a surge in demand or unexpected events. An additional purpose is to fund working capital activities using liquid asset theory. The findings indicate that banks’ performance is significantly impacted by liquidity and working capital management. The research concludes that banks must exercise control over their working capital to optimise profitability and achieve sustainable growth.