Factors affecting liquidity of banks. The panel data were used to analyze and find the results from the period 2017 to 2021. To this end, the study adopts a mixed Jun 1, 2015 · This research identifies factors that explain the liquidity of commercial banks in the Vietnam banking system from 2010 to 2015. Banks’ internal factors bank size, capital Cogent Economics & Finance, 2019. Jun 8, 2024 · Aspachs et al. Arif Apr 20, 2021 · The paper uses fixed effect model (FEM) to study the factors affecting the liquidity ratio of 34 Vietnamese commercial banks in the period of 2005-2019. May 28, 2024 · This study examines the determinants of bank profitability using a quantile regression approach, offering insights into factors affecting banks across different percentiles of profitability. . The article assesses the impact of internal and external factors affecting the liquidity of Vietnamese commercial banks. For this purpose, the study uses a random effect panel data regression model and tests it with data on Indian banks for 21 years, covering the period from 1996 to 2016. Using the OLS regression method for analysis, it was found that: the … Feb 26, 2019 · This research identifies factors that explain the liquidity of commercial banks in the Vietnam banking system from 2010 to 2015. In a branch banking system, the banks can function with less cash reserves because in case of emergency cash can be transferred from one branch to another. Jun 1, 2016 · Based on panel data analysis, we suggest that bank-specific (except cost of funding) and macroeconomic (except unemployment) factors significantly affect bank liquidity. Mar 31, 2019 · The findings showed that bank specific factors significantly affect the performance of commercial banks in Kenya, except for liquidity variable. Secondary data are collected from the annual report of commercial banks. Whereas in unit banking system higher cash reserve is required. The study employs pooled OLS model and a panel data analysis on 45 Indian banks comprising of State Bank of India (SBI) group banks Abstract. Although Indian banks have largely been able to adhere to guidelines of Reserve Bank of India for managing liquidity, factors affecting liquidity in Indian banks remain relatively unidentiﬁed between deposits and bank’s liquidity, which means rise in bank deposits results in the reduction of its liquidity. This study examines the bank-specific and macro-economic factors affecting bank liquidity for eight commercial banks in Ethiopia, covering the period of 2002-2013 by using balanced fixed effect panel regression. However, the mandated liquidity buffer appears to crowd out bank lending and lead to a migration of liquidity risks to banks that are not subject to liquidity regulation. Bonner et al. The study had assessed the factors affecting liquidity of commercial banks in Ethiopia by using the data over the period of 2011 to 2015 on sample size of twelve commercial banks in Ethiopia out of 17 more » total with the aim of investigating macroeconomic as well as government policy and bank specific variables which affecting the Jan 18, 2024 · At a global level, our results point to a set of five internal factors that are statistically significant in explaining bank profitability. These include bank size, deposits, profitability, capital adequacy, GDP and inflation. See full list on ijecm. LIQUIDITY RISK AND METHODS OF MEASUREMENT According to the Basel Committee on Banking Supervision (1997), liquidity risk stems from the bank’s inability to increase capital items to support an increase in Based on these above reasons, the paperattempts to explore the answers for the questions of what determinantsimpacting on the liquidity of the Vietnamese commercial banking system in the past 15 years. , which can Jul 29, 2021 · Zaghdoudi and Hakimi (Citation 2017) investigated the bank-specific and macroeconomic factors that influence the liquidity risk of Tunisian banks and found that banks’ capital adequacy and economic growth positively affected banks’ liquidity risk, while bank size and inflation negatively affected banks liquidity. Moussa (2015) revealed that deposits have an insignificant impact on banks’ liquidity. This research paper is an extension of the thesis that the primary author has undertaken to prove the test of significance and provide concrete evidence that the identified idiosyncratic and ma. Bank for International Settlements /BIS (2008) defines liquidity as the ability of bank to fund increases in assets and meet obligations as they come due, without incurring unacceptable losses. May 20, 2019 · “Although Indian banks have largely been able to adhere to the guidelines of the Reserve Bank of India for managing liquidity, factors affecting liquidity in Indian banks remain relatively unidentified owing to a scarcity of studies on management of liquidity in Indian banks” (Bhati & Zoysa, Citation 2012). To this end, the paper is structured as follows. Hence, liquidity risk arises from the fundamental role of banks in the maturity transformation of short-term deposits into long-term loans. Shyam Bhati (Australia), Anura De Zoysa (Australia), Wisuttorn Jitaree (hailand) Factors affecting the liquidity of commercial banks in India: a longitudinal analysis Received on: 28th of August, 2019 Accepted on: 28th of November, 2019 INTRODUCTION he liquidity of a bank is critically important for bank May 5, 2022 · The article assesses the impact of internal and external factors affecting the liquidity of Vietnamese commercial banks. Using the OLS regression method for analysis, it was found that Jun 30, 2018 · This research investigates factors affecting liquidity of banks operating in Pakistan. 2. The banki ng system is one of the most important spheres of the Dec 10, 2019 · The model considers the effect of regulatory factors, cash reserve ratio, and statutory liquidity, and incorporates four different liquidity ratios specific to the Indian banking scenario. co. Aug 22, 2024 · Liquidity risk is a factor that banks, corporations, and individuals may encounter when they are unable to meet short-term financial obligations due to insufficient cash or the inability to Jan 1, 2024 · We document that the current quantity-based liquidity rule has reduced banks' liquidity risks. (2005) explored internal and external factors affecting the liquidity risk of British banks, finding that maintaining high levels of liquidity reduces the likelihood of central bank support, thus making such support a crucial basis for identifying commercial bank liquidity risk. The objective of this study is to examine the liquidity (LQD) determinants of Indian listed commercial banks. (2015) and Singh and Sharma (2016) found that there is a positive influence of deposits on banks’ liquidity. This research aims to show the factor affecting the liquidity risk of commercial banks in Nepal. Utilizing a comprehensive database from Orbis covering 1200 top-market institutions across 101 countries, the research uniquely employs dynamic panel quantile regression while addressing sample survival extension of similar researches on liquidity and efficiency of the banking system or specific factors affecting bank liquidity creation. Observational data was collected from 28 commercial banks for the period Macroeconomic factors affect banks’ liquidity but are not controlled by the bank’s management as they are by external factors. Apr 12, 2016 · 2) Structure of banking: The banking structure of the country also influence the liquidity requirements of the bank. This research investigates factors affecting liquidity of banks operating in Pakistan. fect on liquidity of Indian banks. Section 2 reviews researches on factors affecting liquidity of commercial banks. divided the factors affecting liquidity of commercial banks into external and internal levels, and find total asset, liquidity ratio, capital adequacy ratio, etc. These factors refer to listed banks (LIS), non May 6, 2021 · Zhang et al. Read online. The model considers the effect of regulatory factors, cash reserve ratio May 21, 2024 · Level liquidity is an important factor that helps the growth and survival of commercial banks. Spanning from 2007 through 2016 the sample of the study includes 23 banks by employing relevant econometric specifications. Spanning from 2007 through 2016 the sample of the study includes 23 banks by employing relevant econometric Jun 30, 2018 · This research investigates factors affecting liquidity of banks operating in Pakistan. Observational data was collected from 28 commercial banks for the period from 2009 to 2020. uk research is to substantiate the factors that impact the liquidity of the banks in the UAE. But the overall effect of macroeconomic variables Jul 27, 2021 · Sopan and Dutta explore the determinants of liquidity risk in 43 Indian banks by examining the bank-specific and macroeconomic factors that affect a bank’s liquidity holdings for the period from 2005 to 2016. Dec 10, 2019 · This paper examines the long-term effect of various regulatory, bank-specific and macroeconomic factors on the determination of liquidity in Indian banks. The study has applied both GMM and pooled, fixed and random effect models to a panel of 37 commercial banks listed on the Bombay Stock Exchange (BSE) in India for the period from 2008 to 2017.

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Factors affecting liquidity of banks. These factors refer to listed banks (LIS), non .