Abstract
This study departs from empirical studies which had focused on the effect of non-performing loan on the performance of banks to the neglect of liquidity of banks. In the wake of the recent collapse of universal banks which has engulfed the Banking sector of Ghana, this study analyse the effect of non-performing loan on liquidity of universal banks in the context of the constant revision of the minimum capital requirement by the central bank. The cross sectional time series design was adopted and the census sampling was used to collect data from twenty banks for the period of 2008 to 2017. The outcome of the study showed that, Non-performing loan (NPL) and Capital adequacy ratio (CAR) positively influence the liquidity of the universal banks using working capital management practice, poor provision, ownership structure, bank size and loan growth as controlling variables. From this backdrop, it is empirically established that, minimum capital requirement indeed matters in the liquidity management of universal banks. It is therefore strongly recommended that the central bank should organise training programmes for the universal banks on fund management in other to have a balance funds in non-current asset and cash to avoid the negative effective on bank panic on their operation.
Highlights
IntroductionSome Nigerian scholars have argued severally that private mission universities are glorified secondary schools (Kanabe, 2015; Michael, 2015) owing largely to the policies of these universities which are contrary to conventional tertiary institutions
In the past and in recent times, studies have explored several areas of student safety and development, most especially in developed nations where priority is placed on student affairs administration, but such efforts are yet to be examined in the literature emanating from Nigeria despite several criticism against the policies of the Nigerian private mission universities which seems to have been specially packaged to ensure student safety and development
Contrary to the belief of many critics on the violation of fundamental human rights, the study has shown nothing like violation but the existence of stringent policies to safeguard students‟ safety and development
Summary
Some Nigerian scholars have argued severally that private mission universities are glorified secondary schools (Kanabe, 2015; Michael, 2015) owing largely to the policies of these universities which are contrary to conventional tertiary institutions. The escalation of social problems such as violent demonstration, cultism, sexual harassment, examination misconduct, corruption, industrial strike and other in the public universities have resulted in disruption of normal academic calendar and poor quality of education. These among others prompted the emergence of private universities to rescue the nation‟s educational system from lethargies (AfNews, 2012; Michael, 2015; Nigeria, 2012; Okafor and Duru, 2010; Yusuf, 2017). The paper is divided into three sections namely: Introduction, literature review and concluding remarks
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