Determinants of Liquidity Considering Role of Market Competition; Evidence from Pakistan’s Banking Sector

Rafique, Amir; Adeel, Muhammad; Akhtar, Kalsoom; Alvi, Muhammad Amir

doi:10.26710/sbsee.v2i2.1617

Cited by 1 publication

(1 citation statement)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…During the study period, the research found no impact of inflation, loan growth, interest rate margin, and nonperforming loans on Ethiopian banks' liquidity. Rafique et al (2020) conducted a study on Pakistani banks from 2006 through 2016 and identified the determinants of macroeconomic and bank-specific factors over banks' liquidity reserve. Through the panel data method, the study implemented random-effects estimates over 20 banks dataset.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Bank Specific and Macroeconomic Determinants on Banks Liquidity

Tasnova

2022

FER

View full text Add to dashboard Cite

Purpose This study examines the influences of bank-specific and macroeconomic determinants on liquidity on 29 listed commercial banks of Bangladesh. Methods To analyze the relationship, this study performs Pooled Ordinary Least Square method, fixed and random effect estimates, and implemented GLS random effect method on strongly balanced panel dataset over 2014 to 2019. Capital adequacy, nonperforming loans, and profitability are considered bank-specific factors while GDP, Monetary policy interest rate, and Interest rate spread are considered the macroeconomic factors. Results Business cycle and monetary policy interest rate inversely affected bank liquidity. Contrary, bank liquidity has a positive association with profitability, nonperforming loans, capital adequacy, and interest rate spread. According to the findings, capital adequacy and business cycle have a significant impact on liquidity. Implications This study has significant implications for bankers, consumers, and policymakers. The banking sector of Bangladesh will highly be benefited from this research as this paper critically analyzes the determinants of banks' liquidity risk. This research will help the banks and other financial institutions to understand the effect of capital adequacy, nonperforming loans on liquidity in the Bangladeshi context. This study infers that banks need to monitor the factors cautiously to avoid the liquidity crisis in the future. Originality There are a few studies that examine these determinants with liquidity in the Bangladeshi context. This remarks the significance of the present paper as this study put an attempt to analyze bank-specific and macroeconomic determinants with bank liquidity in the Bangladeshi context has been conducted within a limited scope.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Impact of Bank Specific and Macroeconomic Determinants on Banks Liquidity

Tasnova

2022

FER

View full text Add to dashboard Cite

show abstract

Determinants of Liquidity Considering Role of Market Competition; Evidence from Pakistan’s Banking Sector

Cited by 1 publication

References 25 publications

Impact of Bank Specific and Macroeconomic Determinants on Banks Liquidity

Impact of Bank Specific and Macroeconomic Determinants on Banks Liquidity

Contact Info

Product

Resources

About