International Journal of Academic and Applied Research (IJAAR)   Year: 2024 | Volume: 8 | Issue: 5 | Page No.: 140-146 The Effect Of Liquidity Monitoring On The Financial Performance Of Banking Institutions In Kampala Metropolitan. Download PDF Erinah Mudondo, Dr.Maina Enock, Assoc.Prof Mabonga Eric Abstract: This study aims to investigate the impact of liquidity monitoring on the financial performance of banking institutions in Kampala Metropolitan. The study applied a descriptive research design. The sample was 201 individuals. This study used both primary and secondary data that was obtained from the response of the resdondents of the applied questionnaires and the face to face interview with some of the banking officers and from journal, articles and other researcher respectively. A descriptive, correlation and linear regression model was used in data analysis. The regression coefficient for liquidity monitoring was 0.290, indicating that, on average, a one-unit increase in liquidity monitoring was associated with a 0.290 unit increase in overall bank financial performance. The coefficient was statistically significant with a p-value of 0.014. Based on these findings, it can be concluded that liquidity monitoring had a statistically significant but relatively weak positive relationship with the overall financial performance of banking institutions in Kampala Metropolitan. However, it is important to note that liquidity monitoring explained only a small proportion of the variation in overall bank financial performance, suggesting that other factors not included in the model may also play a significant role.