LIQUIDITY RISK MANAGEMENT EFFECT ON FINANCIAL PERFORMANCE OF CENTRAL MONETARY REGULATORY AUTHORITIES IN SUB-SAHARAN AFRICA

AbstractThe  study  examined  the impact of liquidity risk management on the financial performance of central monetary  regulatory  authorities  in  sub-Saharan  Africa  (CMRAs).  The  study  covered  17  CMRAs.  A correlational design was employed to investigate the impact of liquidity risk management on the financial performance of central monetary regulatory authorities in sub-Saharan Africa (CMRAs). The objective is to address gaps in existing literature by exploring how liquidity risk management influences the operational effectiveness and financial stability of CMRAs. Utilizing a quantitative experimental research design, the study collects data from financial statements and reports of 16 selected authorities as the sample size. Key financial ratios are used to represent liquidity risk management as an independent variable. Purposive sampling ensures the sample's representativeness. The findings reveal that liquidity risk management and economic growth were not significantly related to financial performance. Based on the study's findings, central monetary regulatory authorities in Sub-Saharan Africa should enhance agility and efficiency through restructuring and better resource allocation. Continuous monitoring of economic indicators and further research  on  liquidity  risk  management  is  recommended.  Further  research  is  needed  on  liquidity  risk management to uncover hidden influences on financial stability.