Liquidity Management and Financial Sector Performance: Evidence from Pakistan

Abstract

The aim of study to investigate the factors effecting liquidity management and financial sector performance evidence from Pakistan. Liquidity has major role in profitability of various commercial banks in Pakistan. Due this purpose seven bank have been selected which are working in Pakistan and data extract from the period 2010 to 21019. The annual reports of bank are used to extract the data for analyzes the effect of liquidity management and financial sector performance. Data has analyzed by using Various technique’s which are Descriptive, correlation, and data regression analysis and result of study tells us that there are significant positive relationship between the liquidity and financial sector performance in the prospectus of Pakistan. Liquidity management has significant effect on banks profitability. To sort out the profitably of nominated banks in Pakistan measured by the ratios return on asset and return on equity. The result of study revealed that there are significant relationship between the liquidity and profitability. This research results shows that significant impact of liquidity ratios of banks liquidity management with ROA and ROE. The result of the study conclude that liquidity management and performance of financial sector has significant. The correlation result analysis shows that there is no strong relation among the variables. The overall result of study has valuables and significant.