1. bookVolumen 11 (2022): Heft 2 (May 2022)
Zeitschriftendaten
License
Format
Zeitschrift
eISSN
2336-9205
Erstveröffentlichung
11 Mar 2014
Erscheinungsweise
3 Hefte pro Jahr
Sprachen
Englisch
access type Uneingeschränkter Zugang

Bank-Specific and Macroeconomic Determinants of Bank Liquidity Creation: Evidence from MENA Countries

Online veröffentlicht: 30 Apr 2022
Volumen & Heft: Volumen 11 (2022) - Heft 2 (May 2022)
Seitenbereich: 55 - 76
Eingereicht: 19 Oct 2020
Akzeptiert: 01 Jun 2021
Zeitschriftendaten
License
Format
Zeitschrift
eISSN
2336-9205
Erstveröffentlichung
11 Mar 2014
Erscheinungsweise
3 Hefte pro Jahr
Sprachen
Englisch
Abstract

This study measures liquidity creation within a sample of 153 banks operating in 12 Middle Eastern and North African (MENA) countries from 2008 to 2017. We found that these banks created a total of $461.32 billion in liquidity in 2017, approximately 1.51 times the total liquidity created in 2008, mainly driven by commercial banks in Gulf Cooperation Council (GCC) countries. We also conducted an econometric analysis to investigate the internal and external factors affecting bank liquidity creation, applying a Fixed Effects model and the new Method of Moments Quantile Regression (MMQR). The results show that, among bank-specific factors, bank liquidity creation in MENA countries is related to capital, size, bank risk, deposits and profitability whilst market concentration does not appear to play a significant role. Regarding macroeconomic factors, inflation, unemployment, savings and monetary policy explain the variations in bank liquidity creation.

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