The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks

This paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measur...

Full description

Bibliographic Details
Main Authors: Ishaq Hacini, Abir Boulenfad, Khadra Dahou
Format: Article
Language:English
Published: University Library System, University of Pittsburgh 2021-09-01
Series:Emerging Markets Journal
Subjects:
Online Access:http://emaj.pitt.edu/ojs/index.php/emaj/article/view/221
_version_ 1828916295157940224
author Ishaq Hacini
Abir Boulenfad
Khadra Dahou
author_facet Ishaq Hacini
Abir Boulenfad
Khadra Dahou
author_sort Ishaq Hacini
collection DOAJ
description This paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measured by the Return on Equity (ROE). Equity to total asset ratio (ETA) is used as the control variable. The study uses the panel data method (Pool, Fixed-effects and Random-effects) for testing the study hypothesis. The results show that liquidity risk has a significant negative impact on the financial performance measured by Saudi Arabian banks.
first_indexed 2024-12-13T20:29:59Z
format Article
id doaj.art-82c647e1cca14116a2234fec066fd101
institution Directory Open Access Journal
issn 2158-8708
language English
last_indexed 2024-12-13T20:29:59Z
publishDate 2021-09-01
publisher University Library System, University of Pittsburgh
record_format Article
series Emerging Markets Journal
spelling doaj.art-82c647e1cca14116a2234fec066fd1012022-12-21T23:32:27ZengUniversity Library System, University of PittsburghEmerging Markets Journal2158-87082021-09-01111677510.5195/emaj.2021.221149The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian BanksIshaq Hacini0Abir Boulenfad1Khadra Dahou2University of MascaraUniversity of MascaraUniversity of MascaraThis paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measured by the Return on Equity (ROE). Equity to total asset ratio (ETA) is used as the control variable. The study uses the panel data method (Pool, Fixed-effects and Random-effects) for testing the study hypothesis. The results show that liquidity risk has a significant negative impact on the financial performance measured by Saudi Arabian banks.http://emaj.pitt.edu/ojs/index.php/emaj/article/view/221liquidity riskliquidity managementfinancial performancebankssaudi arabia
spellingShingle Ishaq Hacini
Abir Boulenfad
Khadra Dahou
The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks
Emerging Markets Journal
liquidity risk
liquidity management
financial performance
banks
saudi arabia
title The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks
title_full The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks
title_fullStr The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks
title_full_unstemmed The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks
title_short The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks
title_sort impact of liquidity risk management on the financial performance of saudi arabian banks
topic liquidity risk
liquidity management
financial performance
banks
saudi arabia
url http://emaj.pitt.edu/ojs/index.php/emaj/article/view/221
work_keys_str_mv AT ishaqhacini theimpactofliquidityriskmanagementonthefinancialperformanceofsaudiarabianbanks
AT abirboulenfad theimpactofliquidityriskmanagementonthefinancialperformanceofsaudiarabianbanks
AT khadradahou theimpactofliquidityriskmanagementonthefinancialperformanceofsaudiarabianbanks
AT ishaqhacini impactofliquidityriskmanagementonthefinancialperformanceofsaudiarabianbanks
AT abirboulenfad impactofliquidityriskmanagementonthefinancialperformanceofsaudiarabianbanks
AT khadradahou impactofliquidityriskmanagementonthefinancialperformanceofsaudiarabianbanks