This study sets out to investigate in broad terms, how banks generate funds, the distribution of the funds so generated between highly liquid and illiquid investments and the resultant impact on the profitability of the banks in an environment that is characterized by a high level of uncertainty. Cash is the life blood of any business. In the banking industry, cash is the primary stock in trade. Thus, the profitability and survival of any bank depends to a large extent on how well this all-important resource is managed.