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Determinants Of Commercial Bank Liquidity In Hungary

Author

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  • Pavla Vodová

    (Silesian University, School of Business Administration)

Abstract

This paper aims to identify determinants of liquidity among Hungarian commercial banks. The data cover the period from 2001 to 2010. Results of panel data regression analysis show that bank liquidity is positively related to capital adequacy of banks, interest rate on loans and bank profitability and negatively related to the size of the bank, interest margin, monetary policy interest rate and the interest rate on interbank transactions. The relation between the growth rate of GDP and bank liquidity is ambiguous.

Suggested Citation

  • Pavla Vodová, 2014. "Determinants Of Commercial Bank Liquidity In Hungary," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 9(3), pages 64-71, January.
    • Handle: RePEc:rze:efinan:v:9:y:2014:i:3:p:64-71
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    References listed on IDEAS

    as
    1. Irina Bunda & Jean-Baptiste Desquilbet, 2008. "The bank liquidity smile across exchange rate regimes," International Economic Journal, Taylor & Francis Journals, vol. 22(3), pages 361-386.
    2. Saibal Ghosh, 2010. "Credit Growth, Bank Soundness and Financial Fragility," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(1), pages 69-98, March.
    3. Marcella Lucchetta, 2007. "What Do Data Say About Monetary Policy, Bank Liquidity and Bank Risk Taking?," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 36(2), pages 189-203, July.
    4. Alin Marius Andries, 2009. "A comparative analysis of performance and soundness indicators of the main Romanian banks," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 45-70, November.
    5. Joël Bessis, 2009. "Risk Management in Banking," Post-Print hal-00494876, HAL.
    6. David Fielding & Anja Shortland, 2005. "Political Violence and Excess Liquidity in Egypt," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 542-557.
    7. Ghosh, Saibal, 2010. "Credit Growth, Bank Soundness and Financial Fragility: Evidence from Indian Banking Sector," MPRA Paper 24715, University Library of Munich, Germany.
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    Cited by:

    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. Radoslaw Ciukaj & Krzysztof Kil, 2020. "Determinants of Polish Co-operative Banks’ Financial Liquidity in the Post-Crisis Perspective," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 70(4), pages 350-372, October.

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    More about this item

    Keywords

    liquidity risk; liquidity ratio; panel data regression analysis Least Squares Method;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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