OPTIMIZING BANK LIQUIDITY IN CENTRAL AND EASTERN EUROPE
OPTIMIZING BANK LIQUIDITY IN CENTRAL AND EASTERN EUROPE
Author(s): Ionica MunteanuSubject(s): Business Economy / Management, Transformation Period (1990 - 2010), Accounting - Business Administration
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: bank liquidity; profitability; optimum; marginal impact; non-linear regression;
Summary/Abstract: This research paper responds to the current international concern in bank liquidity and offers a model for the optimization of the bank liquidity level, by identifying the marginal impact of the bank liquidity ratio on bank profitability. The non-linear relationship between these two variables is validated through the GMM procedure, on a panel of Eastern and Central European commercial banks over the period 2003-2010. The optimal level of bank liquidity resulted after getting the maximum condition for return on equity and return on assets, as measures of profitability, enhances the recent financial crisis effects.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2013
- Issue No: 11
- Page Range: 83-90
- Page Count: 8
- Language: English
