Abstract :This study evaluates the relationship between liquidity management and banks performance for the
period 2005 – 2014, using some econometric tools to analyze the variables of interest. The study performs the
Augmented Dickey Fuller (ADF) unit root test and found out that all the variables were stationary at first and second
differencing. The estimation regression result indicates that Total Deposit of Banks (TOD) and Loans-Total Deposit
Ratio (LDR) were statistically significant while Return on Assets (ROA) have a positive but statistically
insignificant relationship with Liquidity Ratio (LR). The study therefore recommended amongst others that monetary
authorities should adopt appropriate liquidity ratio so as enhance the liquidity profile of banks.