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Analyzing the Impact of Cash Management Strategies on the Financial Stability of Deposit-Taking Saccos in Nigeria

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Analyzing the Impact of Cash Management Strategies on the Financial Stability of Deposit-Taking Saccos in Nigeria

Ik-Ugwoezuonu, Lilian PhD1 & Obodoechi, Osita Betrand PhD2
1Department of Cooperative Economic and Management, Federal Polytechnic Nekede, Owerri, Imo, Nigeria
2Department of Cooperative Economic and Management, Institute of Management and Technology, Enugu Nigeria

Citations – APA

Ik-Ugwoezuonu L. & Obodoechi, O. B. (2024). Analyzing the Impact of Cash Management Strategies on the Financial Stability of Deposit-Taking Saccos in Nigeria. Global Journal of Finance and Business Review, 7(2), 21-33. DOI: https://doi.org/10.5281/zenodo.10888100
The study analyzed the impact of cash management strategies on the financial stability of Deposit-Taking SACCOS in Nigeria. It focuses on assessing the existing cash management strategies employed by deposit-taking Savings and Credit Cooperative Societies (SACCOS) in Nigeria, examining their impact on financial stability, and identifying the challenges faced in implementing effective cash management strategies within the Nigerian socio-economic context. The research utilized a mixed-methods approach, including interviews, surveys, and financial data analysis, to gather comprehensive insights. The findings reveal that SACCOS in Nigeria employ a range of cash management strategies, including cash flow monitoring, liquidity management, and financial planning. These strategies significantly influence the financial stability of SACCOS, as evidenced by their positive impact on key financial stability indicators. Effective cash management practices enhance the ability of SACCOS to meet financial obligations, navigate economic uncertainties, and mitigate financial risks. However, the study also identifies several challenges in implementing effective cash management strategies. These challenges include regulatory constraints, limited resources, and technological limitations. Regulatory barriers hinder the adoption of advanced cash management practices, while limited resources and technological limitations affect the implementation and monitoring of cash management strategies. To address these challenges and optimize cash management practices, the study recommends several strategies. These include investing in training and capacity building programs for SACCOS staff, implementing robust cash flow monitoring systems, developing comprehensive cash management policies and procedures, and fostering a culture of financial discipline and transparency. Additionally, collaboration with regulatory authorities, industry associations, and the establishment of industry forums or networks for knowledge sharing are crucial in overcoming challenges and promoting effective cash management practices. By implementing these recommendations, deposit-taking SACCOS in Nigeria can enhance their cash management practices, strengthen the link between cash management strategies and financial stability, and overcome challenges to achieve optimal financial performance and sustainability.ABSTRACT

Keywords: Cash Management Strategies; Financial Stability; Deposit-Taking; SACCOS; Cash Management Practices

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