Regulacyjne granice stabilności depozytów gospodarstw domowych
The Boundaries of Household Deposit Stability – Regulatory Assessment

Summary/Abstract: This study estimated determinants of Polish banks’ profitability in the context of their liquidity policy.Return on equity (ROE) served as an independent variable in the model, whereas balance sheet measureswere used as liquidity risk predictors. The surveys conducted based on four biggest commercial banksdemonstrated relationships between liquidity risk and rates of return of banks. It should be emphasizedthat in the Polish economic landscape the growing share of both liquid assets and loans has a positiveeffect on ROE. Only a higher ratio of very highly liquid assets, identified with cash in the central bank,to the balance sheet total is a factor to limit ROE. Consequently, due to the specific conditions, Polishbanks do not have to be interested in maintaining an increasing growth rate of lending activity sincefinancial investments do not substantially inhibit their profitability (measured with ROE).

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