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Liquidity Dynamics of Banks in Emerging Market Economies


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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.

eISSN:
2336-9205
Idioma:
Inglés
Calendario de la edición:
3 veces al año
Temas de la revista:
Business and Economics, Business Management, other