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Title:
THE EFFECTS OF LIQUIDITY RISK MANAGEMENT ON THE FINANCIAL PERFOMANCE OF BAMENDA POLICE CO-OPERATIVE CREDIT UNION (BAPCCUL)

Authors:
VISEMIH WILLIAM MUFFEE

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VISEMIH WILLIAM MUFFEE
Higher Institute of Commerce and Management, The University of Bamenda, Bambili, P.O. Box 39 Bambili, North West of Cameroon

MLA 8
MUFFEE, VISEMIH WILLIAM. "THE EFFECTS OF LIQUIDITY RISK MANAGEMENT ON THE FINANCIAL PERFOMANCE OF BAMENDA POLICE CO-OPERATIVE CREDIT UNION (BAPCCUL)." Int. j. of Social Science and Economic Research, vol. 5, no. 5, May 2020, pp. 1008-1072, ijsser.org/more2020.php?id=75. Accessed May 2020.
APA(6)
MUFFEE, V. (2020, May). THE EFFECTS OF LIQUIDITY RISK MANAGEMENT ON THE FINANCIAL PERFOMANCE OF BAMENDA POLICE CO-OPERATIVE CREDIT UNION (BAPCCUL). Int. j. of Social Science and Economic Research, 5(5), 1008-1072. Retrieved from ijsser.org/more2020.php?id=75
Chicago
MUFFEE, VISEMIH WILLIAM. "THE EFFECTS OF LIQUIDITY RISK MANAGEMENT ON THE FINANCIAL PERFOMANCE OF BAMENDA POLICE CO-OPERATIVE CREDIT UNION (BAPCCUL)." Int. j. of Social Science and Economic Research 5, no. 5 (May 2020), 1008-1072. Accessed May, 2020. ijsser.org/more2020.php?id=75.

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Abstract:
Liquidity risk management is one of the serious concerns and challenges in the modern era Micro Finance Institutions. Micro Finance Institutions having good asset quality, strong earnings and sufficient capital may fail if they are not maintaining adequate liquidity. Consequently, this study seeks to look for the effects of liquidity risk management on the financial performance of the Bamenda Police Cooperative Credit Union (BAPCCUL). The study adopted Ex post facto research design where data was retrieved from the financial statements which were the balance sheet, income statements and notes of BAPCCUL. Ordinary Least Square method of regression was applied to test for the hypothesis which assesses the effects of liquidity risk on financial performance. The results indicated that customer deposits have a positive effect on financial performance of BAPCCUL and so BAPCCUL is encouraged to widen its coverage in the national territory by opening many branches. Also, the amount of cash balances, loans and savings all had positive effects on the financial performance of BAPCCUL according to the outcome of the study. The only variable that portrays a negative effect with net profit was leverage. The period studied in this research ran from 2004 to 2018 and this period was chosen due to availability of data since it was not possible to obtain data for other years. Net profit was considered as a measure of financial performance in the study and the researcher recommends and encouraged that other measures of performance should also be considered when carrying such a study.

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