The importance of the cash flow position to the financial performance of bank and other corporate entities have been emphasized by scholars, but with little venture into how bank funds management have affected liquidity. By the nature of banking firms as financial intermediaries, there is not downplaying of how cash flow can affect their liquidity. It is on the basis of this that this study set out to know the effects of cash flow through operating activities of the liquidity positions of First Bank of Nigeria. Times series data were used from the study spanning from 2009 to 2020. Simple regression was used as technique of data analysis collected through secondary source. Loan to deposit ratio was used as proxy for bank liquidity, the explained variable for the study is nCOF (net cash flow from operating activities of First Bank of Nigeria). This study’s empirical findings revealed that net cash flow from operating activities have significantly affected liquidity position of First Bank of Nigeria. In conclusion the net cash flow from operating activities of First Bank of Nigeria have significant effect on its liquidity position. The study then recommends that Cash flow ratio should be use in evaluating the liquidity position of first Bank Nigeria limited.
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