The Role of managerial Accounting in Managing Banking Liquidity and Profitability

Abstract

The role of managerial accounting has increased in this century due to the increase in the volume of money and the size of the economy, the expansion of business entities and economic projects, it provides special information in economic decision making for top management and other users. Therefore, the reports must include adequate information to meet the different needs of those users in planning, controlling, and motivating and decision-making. The problem of this study is defined as follows: Banks make profit by utilization of deposits which varies, as they are either investment deposits or demand deposits,….etc which may be quickly needed. In spite of that fact that they are employed in different projects through different modes of investment In studying the role of managerial accounting in managing banking liquidity and profitability by Tadamon Islamic Bank, the following hypotheses were put forth:  The efficiency and goodness of managerial accounting characteristics lead to rational decision making in right and suitable time.  The optimal situation to maximize profit and keep at the same time enough liquidity according to the restriction of the Central Bank in an equilibrium position which contains contradictory factors.  The optimal allocation of liquid resources leads to generation of maximum profit The research methodology depended on the empirical method aimed to execute the partial data collected, which has been statistically tested, Interviews and opinions of the Tadamon Islamic Bank involving the percentages of liquidity and profitability and analysis. We found that the important results were as follows: o Scientific method in managing liquidity leads to an increase in earning. o Designing and applying of good accounting reports in banks represents accounting preciseness. o Soundness of the managerial accounting report system in banks leads to issuing good and applicable management policies. o Sufficient internal control over the internal report criteria maintains reliability and efficiency of the assets of the firm . o The bank study and evaluate the system of liquidity control . The recommendations are : o Banks must find an efficient, scientific system for managing liquidity. o Banks should establish sufficient internal control over their internal report criteria. o Every bank should study and evaluate the system and role of liquidity control periodically and regularly. o Banks must attain reliability of qualitative criteria of managerial accounting