The effect of liquidity on the banks’ profitability: empirical evidence from the commercial banks of Afghanistan

The study aims to inspect liquidity's influence on the profitability of commercial banks in Afghanistan. Literature is available topic developed and developing economies. But there a lack research relationship between liquidity Therefore, an attempt has been made analyze impact management banking sector Based board frameworks, new global monetary emergency attentive importance productive liquidity. five-year data was collected from 12 Afghanistan 2016 2020. We used OLS techniques for estimation. results show that networking capital ratio insignificant effect ROA. current positively significantly affects ROA case private results, it concluded notably impacts banks' These findings suggest should manage their operational risk properly by diversifying portfolio into return-generating assets, prudently controlling risk, reducing leverage levels. regulatory authority expand its framework guidance support banks.