1. bookVolume 11 (2022): Issue 1 (January 2022)
Journal Details
License
Format
Journal
eISSN
2336-9205
First Published
11 Mar 2014
Publication timeframe
3 times per year
Languages
English
access type Open Access

Liquidity Dynamics of Banks in Emerging Market Economies

Published Online: 18 Jan 2022
Page range: 179 - 206
Received: 09 Sep 2020
Accepted: 07 Dec 2020
Journal Details
License
Format
Journal
eISSN
2336-9205
First Published
11 Mar 2014
Publication timeframe
3 times per year
Languages
English
Abstract

This study examines the liquidity dynamics of banks in emerging market economies. Using annual data of 91 commercial banks from 11 countries, the study established that banks in emerging markets have target liquidity ratios they pursue and partially adjust due to market frictions. Overall, risk aversion and prudence play a significant role in explaining the liquidity dynamics by banks in emerging market economies.

Keywords

JEL Classification

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