ASSESSMENT OF LIQUID ASSET MANAGEMENT PRACTICE (IN CASE OFAWASH BA

Abstract

The term liquid 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 which constitute shortterm assets. This study would attempt to examine the assessment of liquid asset management practices in the case of Awash Bank in Emdebir !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 engages in provide 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 was to assess the liquid asset management technique, the bank policies and procedure to manage liquid asset, loan authorization and collection. The research design was descriptive type. More over primary data from the bank was collected. The primary data sources were from interview. The respondents of interview were selected with non-probability sampling using judgmental sampling. The respondents were finance (liquid) assets manager and credit manager of the bank. The data from sources were analyzed and interpreted using table, figure and Percentage. Based on the analysis and finding, conclusions and recommendation were made