ASSESSMENT OF LIQUID ASSET MANAGEMENT PRACTICE IN COMMERICIAL BANK OF ETHIOPIA IN THE CASE OF WOLKITE BRANCH

Abstract

The term asset management is one of the most fundamental topics in the field of corporate finance. It refers to the firm’s investment in inventory, accounts receivable, cash and liquid securities, all of quid, which constitute short-term assets. This study attempt to examine the assessment of liquid asset management practices in the case of commercial bank of Ethiopia Wolkite branch. One of the major problems of financial institution was improper management of liquid asset, which were, have greater impact for the survival of the company, because of liquidity problem. This bank engaged in providing different kinds of financial service like domestic and international banking service. The study would attempt to address the research questions having attention in the statement of the problem and objective of the study. The main objective of the study is to assess the liquid asset management technique, the bank policies and procedure to manage liquid asset, loan authorization and collection. The researcher use descriptive type design. More over both primary and secondary data from the bank collect. The primary data sources are from interview and questionnaires while secondary data includes the 2017-2021 G.C years audited financial statement or annual reports. The data from both sources analyzed and interpret by using table, figure and percentage. Based on the analysis and finding, conclusions and recommendation