ROLE OF CASH MANAGEMENT ON THE PROFITABILITY OF MICRO FINANCE INSTITUTIONS

ABSTRACT

The purpose of this study was to analyze the effect of cash management on the profitability of TBPCCUL. To arrive at this, specific objectives were developed; To evaluate the effect of cash management on Financial profitability of TBPCCUL, To determine the effect of cash management on economic profitability. The study on the effects of cash management on the profitability of TBPCCUL, the population of the study was 25 working staff selected from the various Microfinance Institutions in Fako. The data was analyzed using descriptive statistics and presented using regression techniques. The study found out that these Microfinance Institutions are made up of both males and females. There is a high profitability registered by customers and the profitability of employees in these institutions. The findings revealed that cash management has a positive impact on the profitability which is in accordance with the alternative hypothesis of the study and the staffs made of males and females performance profitability better than the one made of just female. As the recommendations we say that financial institutions should adopt good cash management policies and adopt better procedures and techniques of cash management.