“…Following the LT gap and liquidity creation measurement, the literature on bank liquidity creation has grown rapidly. Several studies have discussed the determinants of bank liquidity creation (Rauch et al, 2009;Pana et al, 2010;Chen et al, 2010;Grover and Sinha, 2019). Their analyses have included the unemployment rate, the interest rate, gross domestic products (GDP), return on equity (ROE), return on assets (ROA), operating profit, bank capital, credit risk, market power, profitability, the business cycle, gross savings, lending rate and regulatory policy.…”