Banks are financial Intermediaries, which take deposits from surplus sources and invest it in deficit area at a higher rate. This is the primary function of a bank. But bank cannot invest all his money, as some of its deposit should be kept as mandatory reserve of Bangladesh Bank. Also a part of the deposit is required for day-to-day transaction. For making maximum profit Bank have to maintain a proper ratio between its assets and liabilities. As a student of EMBA Banking, in Dhaka University I would like to present on Liquidity VS Profitability in a Bank. In this paper I shall discuss how a bank maintains its safe liquidity as well as earns maximum profit.
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