Basel III standards and liquidity determinants in Vietnamese commercial bank

Le-Bao, Thy; Ho, Linh; Lang, Dai

doi:10.15549/jeecar.v10i3.1176

Cited by 1 publication

(4 citation statements)

References 33 publications

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“…Moreover, it was discovered that bank size (TOA) had no discernible impact on liquidity L4. This result contradicts the findings of [2,7,8], and [11], and others, which showed that bank size positively impacted bank liquidity. Finally, this study discovered that there was no discernible evidence that NPL was related to liquidity L4.…”

Section: Determinants Of Liquidity Ratio L1contrasting

confidence: 89%

“…Although it is consistent with the findings of [2,11,17] and [18], the positive relationship between the NPL and L1 ratio is rather unexpected and surprising. From the standpoint of a com- Business, management and accounting mercial bank, extremely cautious liquidity risk management -which includes safeguarding the levels of non-performing loans with liquid assets -can explain this.…”

Section: Determinants Of Liquidity Ratio L1supporting

confidence: 85%

“…To reduce the likelihood of a bank run, this study recommends that authorities track down and keep an eye on the identified internal factors that negatively affect banks' liquidity. [2] looked into the CEO traits, bank-specific variables, and ownership structures of 29 Vietnamese commercial banks to determine what factors affected the banks' liquidity. The results of this study demonstrate that loan loss provision, bank size, age, and local market power all have a positive effect on bank liquidity.…”

Section: Business Management and Accountingmentioning

confidence: 99%

“…Banks have been forced to develop gold standards for handling the mismatch of maturity between loan and deposit tenors, besides averting any financial challenges, instigated by a bank run [1]. As banks' liquidity positions are critical to their survival, best practices include taking the necessary steps to handle the risk from derived liquidity while guaranteeing stability to the bank clients and bank shareholders [2]. Though there are differing views on whether the development of the financial system promotes economic growth, once the relevance of banks' resource allocation is discussed, a consensus is reached.…”

Section: Introductionmentioning

confidence: 99%

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Mozambican commercial bank liquidity and its determinants

Fombang,

Wanzala

2023

Eureka: SH

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Despite the Central Bank of Mozambique's best efforts to assist commercial banks through a range of policies and regulations, the majority of these banks have been unable to satisfy their liquidity obligations on time, resulting in unacceptably large losses that have forced mergers or necessary resolutions. Thus, the purpose of this study was to determine the factors that affect Mozambican commercial banks' liquidity using bank-specific and macroeconomic data from 2013 to 2022. Data was analysed using unbalanced panel regression analysis (PRA). Specific bank data were gathered from a sample of eight commercial banks, which control 95 % of the market share in the banking system bank's annual report, which was accessible on their websites, while macroeconomic data were gathered from World Bank reports and Central Bank of Mozambique’s reports from 2013 to 2022 (10 years). Financial statements from the commercial banks were used for all statistical calculations for the years 2013 – 2022. The research findings show that bank liquidity was significantly and positively impacted by the GDP, inflation, loan interest rates, amount of non-performing loans, capital adequacy, and bank profitability. There was no statistically significant variation in bank size when it came to the decrease in liquidity. According to the report, Mozambican commercial banks should be more focused on deposit mobilization to preserve a healthy liquidity buffer and enhance liquidity performance. Therefore, by presenting results on the current liquidity position and the macroeconomic and bank-specific factors influencing the liquidity of commercial banks in Mozambique, this study hopes to add to the body of current literature. The research study suggests strengthening the fiscal and monetary policies to improve bank liquidity control and monitoring systems in compliance with Basel III regulations.

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