1. bookVolume 11 (2022): Edition 2 (May 2022)
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11 Mar 2014
3 fois par an
access type Accès libre

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

Publié en ligne: 30 Apr 2022
Volume & Edition: Volume 11 (2022) - Edition 2 (May 2022)
Pages: 55 - 76
Reçu: 19 Oct 2020
Accepté: 01 Jun 2021
Détails du magazine
Première parution
11 Mar 2014
3 fois par an

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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