IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v8y2021i1p1956065.html
   My bibliography  Save this article

Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach

Author

Listed:
  • Mekonnen Kumlachew Yitayaw

Abstract

This study investigated the bank-specific and macroeconomic determinants of commercial banks’ liquidity in Ethiopia using secondary unbalanced panel data. The empirical analysis is carried out through the use of the generalized method of moments (GMM) estimation of dynamic panel data from 15 commercial banks from 2009–2019. The model result shows that lagged value of liquidity and deposit had a positive and statistically significant effect on commercial banks’ liquidity. On the other hand, capital adequacy, bank size, interest rate margin, and gross domestic product had a negative and statistically significant effect on the commercial bank’s liquidity. The study suggested that commercial banks in Ethiopia shall be more concerned about deposit mobilization to maintain a sufficient liquidity buffer and improve liquidity performance. Finally, the current study provides useful insights for bankers, analysts, regulators, investors, and other interested parties on the liquidity levels of Ethiopian commercial banks and their determinants and contributes to the scarce empirical evidence.

Suggested Citation

  • Mekonnen Kumlachew Yitayaw, 2021. "Firm-specific and macroeconomic determinants of commercial banks liquidity in Ethiopia: Panel data approach," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1956065-195, January.
  • Handle: RePEc:taf:oabmxx:v:8:y:2021:i:1:p:1956065
    DOI: 10.1080/23311975.2021.1956065
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2021.1956065
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/23311975.2021.1956065?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oabmxx:v:8:y:2021:i:1:p:1956065. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.