The Trends Analysis of Asset and Liability of Micro Finance Banks

Abstract

Over the years the micro finance banks sub-sector have witness some changes as a result of changes in macroeconomic system which was orchestrated by central bank of Nigeria and global financial crisis. These changes have made the micro financial sub-sector adopt different growth strategies to manage its financial risk to ensure the survival of their firms. The aim of the study is to analyze asset and liabilities of micro finance banks of Nigeria to identify her growth strategy. The study is postulating an asset and liability management growth strategy to promote a diversified funding sources, sound asset and liability management which is critical to posting an excellent performance. Specific objectives achieved: identify growth strategies adopted by Nigeria micro finance banks sub-sector. Identify risks exposed by micro finance banks operating in the sub-sector. Then, suggest the implementation plan of asset and liability management. The study recommended the training of micro finance banks management on asset and liability management techniques.