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Liquidity - A Changing Concept, Within The Post Crisis Environment

Author

Listed:
  • Dan Costin NIÞESCU

    (Bucharest University of Economic Studies, Romania)

  • Florin Alexandru DUNA

    (Bucharest University of Economic Studies, Romania)

Abstract

The paper aims to reflect the deep correlations between liquidity and lending mechanisms, within the banking system, both at macro and micro/individual bank’s level, related to the post crisis economical context. Liquidity represents a very important indicator within the management of the banks, not easy to understand, monitor and use. The paper provides a unique mix of financial analysis on the top five Romanian bank’s indicators, integrated within a strategic analysis of the context, regulatory framework and evolutions impacting on liquidity and lending mechanisms. The introduction includes our motivation for drafting this research paper. The second part of the paper presents the rich and latest body of literature, focusing on the evolving role of the liquidity concept and the changing relationship with other relevant indicators, within the post crisis environment. The third part presents the methodology, database, the financial analysis for relevant indicators of the top 5 Romanian banks, but also the correlations and results of our research. The forth part reflects discussions and conceptual approaches on liquidity, in order to integrate our analysis within the context, due to deep and strategic changes. The last part represents our concluding remarks

Suggested Citation

  • Dan Costin NIÞESCU & Florin Alexandru DUNA, 2017. "Liquidity - A Changing Concept, Within The Post Crisis Environment," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 18(4), pages 421-443, October.
    • Handle: RePEc:rom:rmcimn:v:18:y:2017:i:4:p:421-443
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    File URL: https://rmci.ase.ro/no18vol4/07.pdf
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    References listed on IDEAS

    as
    1. Jean-Loup, Soula, 2017. "Measuring heterogeneity in bank liquidity risk: Who are the winners and losers?," The Quarterly Review of Economics and Finance, Elsevier, vol. 66(C), pages 302-313.
    2. Bouwman, Christa H. S., 2013. "Liquidity: How Banks Create It and How It Should Be Regulated," Working Papers 13-32, University of Pennsylvania, Wharton School, Weiss Center.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    liquidity; regulations; capital adequacy; lending mechanism; banking system; liquidity risk management.;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • F15 - International Economics - - Trade - - - Economic Integration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • G01 - Financial Economics - - General - - - Financial Crises
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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