International Liquidity Channel and Performance of Commercial Banks in Nigeria

This study examined the effect of international liquidity channels on profitability quoted commercial banks in Nigeria. The objective was to examine direction which channel affects profitability. Return equity used as dependent variable while Monetary policy proxy by percentage net foreign assets, financial market portfolio investment, trade Nigeria terms trade, capital mobility direct investment and currency variation naira US dollar. Panel data return were sourced from reports variables Central statistical bulletin. Ordinary least square methods analysis methods. found that 50.3 percent is explained equation. channel, have negative has positive no significant banks. recommends Bank should adopt an appropriate macro prudential framework enable become internationally active solvency. depreciating exchange rate be integrated monetary macroeconomic policies avert its economy banking industry. regulatory authorities bank management formulate manage shocks, environment global crises enhance Nigerian system soundness.