Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016
This study estimated determinants of Polish banks’ profitability in the context of their liquidity policy. Return on equity (ROE) served as an independent variable in the model, whereas balance sheet measures were used as liquidity risk predictors. The surveys conducted based on four biggest comme...
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| Format: | Article |
| Language: | English |
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Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
2017-04-01
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| Series: | Problemy Zarządzania |
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| Online Access: | https://pz.wz.uw.edu.pl/resources/html/article/details?id=169609 |
| _version_ | 1811242642794610688 |
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| author | Agnieszka Wójcik-Mazur |
| author_facet | Agnieszka Wójcik-Mazur |
| author_sort | Agnieszka Wójcik-Mazur |
| collection | DOAJ |
| description | This study estimated determinants of Polish banks’ profitability in the context of their liquidity policy.
Return on equity (ROE) served as an independent variable in the model, whereas balance sheet measures
were used as liquidity risk predictors. The surveys conducted based on four biggest commercial banks
demonstrated relationships between liquidity risk and rates of return of banks. It should be emphasized
that in the Polish economic landscape the growing share of both liquid assets and loans has a positive
effect on ROE. Only a higher ratio of very highly liquid assets, identified with cash in the central bank,
to the balance sheet total is a factor to limit ROE. Consequently, due to the specific conditions, Polish
banks do not have to be interested in maintaining an increasing growth rate of lending activity since
financial investments do not substantially inhibit their profitability (measured with ROE). |
| first_indexed | 2024-04-12T13:54:06Z |
| format | Article |
| id | doaj.art-59ac242587f14f47a6673fad1f5cc10d |
| institution | Directory Open Access Journal |
| issn | 1644-9584 2300-8792 |
| language | English |
| last_indexed | 2024-04-12T13:54:06Z |
| publishDate | 2017-04-01 |
| publisher | Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego |
| record_format | Article |
| series | Problemy Zarządzania |
| spelling | doaj.art-59ac242587f14f47a6673fad1f5cc10d2022-12-22T03:30:25ZengWydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu WarszawskiegoProblemy Zarządzania1644-95842300-87922017-04-01151(66) t.25363DOI:10.7172/1644-9584.66.3Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016Agnieszka Wójcik-Mazur0Częstochowa University of Technology, Faculty of Management, Institute of Finance, Banking and AccountingThis study estimated determinants of Polish banks’ profitability in the context of their liquidity policy. Return on equity (ROE) served as an independent variable in the model, whereas balance sheet measures were used as liquidity risk predictors. The surveys conducted based on four biggest commercial banks demonstrated relationships between liquidity risk and rates of return of banks. It should be emphasized that in the Polish economic landscape the growing share of both liquid assets and loans has a positive effect on ROE. Only a higher ratio of very highly liquid assets, identified with cash in the central bank, to the balance sheet total is a factor to limit ROE. Consequently, due to the specific conditions, Polish banks do not have to be interested in maintaining an increasing growth rate of lending activity since financial investments do not substantially inhibit their profitability (measured with ROE).https://pz.wz.uw.edu.pl/resources/html/article/details?id=169609liquidity riskbankprofitabilitydeterminants |
| spellingShingle | Agnieszka Wójcik-Mazur Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016 Problemy Zarządzania liquidity risk bank profitability determinants |
| title | Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016 |
| title_full | Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016 |
| title_fullStr | Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016 |
| title_full_unstemmed | Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016 |
| title_short | Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016 |
| title_sort | effect of structural liquidity on profitability of polish commercial banks in 2009 2016 |
| topic | liquidity risk bank profitability determinants |
| url | https://pz.wz.uw.edu.pl/resources/html/article/details?id=169609 |
| work_keys_str_mv | AT agnieszkawojcikmazur effectofstructuralliquidityonprofitabilityofpolishcommercialbanksin20092016 |