The Impacts Of Liquidity Risks On Reputation Among Non-bank Financial Institutions In Ghana

Liquidity risk remains a major challenge facing all organisations especially those operating in the financial sector.A consequence of this risk is quite dire because it does not only affect the fortunes of the organisations that suffer them but also extend to the entire sector.It is in this light that a study that investigates further into this risk is important.The objectives of this study are to assess the impacts of liquidity risks,identify key factors affecting and impacts of liquidity risks on reputation among non-bank financial institutions in Ghana,as well as develop guidelines for managing liquidity risks in non-bank financial institutions.Using semi-structured questionnaires,data was collected from twenty employees from four categories of non-bank financial institutions.Results from the study also reveals that non-bank financial institutions do not have a robust approach to managing liquidity risk although they have a liquidity risk manual that guide their management of liquidity risk.The study recommends that non-bank financial institutions periodically review their reputation,develop manual and checklist.Liquidity risks manual must be reviewed and updated from time to time and stress tests carried out to test the liquidity risk absorption of non-bank financial institutions.