ARTÍCULO
TITULO

Determinants of Bank Liquidity in the Middle East Region

Hani El-Chaarani    

Resumen

The objective of this study is to examine the determinants of bank liquidity in the Middle East region. It also aims to compare the liquidity levels of banking sectors between Middle Eastern countries. Two different liquidity measures, four bank specific factors and three macroeconomic factors have been manipulated by using the WLS regression on 183 banks from eight different countries during a period of three years (2014, 2015 and 2016).The research employed ?loans-to-assets? and ?loans-to-deposits? as proxies to measure the bank?s liquidity level. The bank specific factors include assets quality, performance level, capitalization ratio and bank size. The macro economic factors used in this study are economic growth, unemployment and inflation rates. The results indicate that Lebanese banks have the highest level of liquidity whereas Omani banks have the lowest level of liquidity. In addition, the study shows a decreasing of bank liquidity during 2016 in Middle Eastern countries. The additional analysis reveals the significant impacts of economic growth, assets quality, capital level and bank size on liquidity in the banking sector. Finally, the results reveal that larger banks have to monitor their liquidity risks by controlling the level of provided loans and, they recommend central banks keep an eye on equity ratio and non-performing percentage of loans especially during economic growth.Keywords: Liquidity, banks, capital structure, performance, economic growth, unemployment, inflation.JEL Classifications: G21, J6DOI: https://doi.org/10.32479/irmm.7742

 Artículos similares

       
 
Wakgari Kitila, Kenenisa Lemi, Mohammed Sultan     Pág. 1 - 7
Risk assessment is the careful analysis and evaluation of the diverse factors that can bring risks. Risk assessment provides the banks an opportunity to determine the vulnerabilities and risk associated with a banking system. The aim of this study is to ... ver más

 
Ayse Altiok Yilmaz     Pág. 5 - 10
The aim of this study is to examine the lending relationships between banks and SMEs. Numerous authors have investigated the importance of banking relationships in lending to small businesses. A major issue is the relative difficulty in obtaining meaning... ver más

 
Sri Wahyuni,Pujiharto Pujiharto     Pág. 271 - 282
This study aims to measure the efficiency of profit and examine the factors that affect the efficiency of shariah banks profit in Indonesia such as the size of banks, risk financing, and capital adequacy. This study used the Shariah banks in Indonesia, d... ver más

 
Arman Bin Hj. Ahmad, Yunaiha Binti Ismail2, Mohd Farid Baharudin Kadir    
Mobile payments become a familiar tool in internet banking that the transaction are made by online banking through virtual transaction. In accordingly with current technological advancements, mobile payments are very popular and became the pattern for cu... ver más

 
Etikah Karyani,Sidharta Utama     Pág. 189 - 200
The purpose of this study is to test empirically the relationship between ownership concentration and risk taking by banks which are proxied by the CAR and LDR (li-quidity ratio). The study was motivated by the limited previous studies that analyze the s... ver más