BANK LIQUIDITY AND PROFITABILITY IN THE POLISH BANKING SECTOR
Liquidity and profitability are two very important aspects of the banking business. The aim of this paper is to thoroughly evaluate the development of bank profitability and liquidity in the Polish banking sector and to analyze the link between profitability and liquidity ratios with the use of corr...
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| Format: | Article |
| Language: | English |
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University of Applied Sciences in Bielsko-Biała
2016-04-01
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| Series: | Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej |
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| Online Access: | https://91.241.33.211:443/index.php/asej/article/view/472 |
| _version_ | 1827266831556018176 |
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| author | Pavla Klepkova Vodova |
| author_facet | Pavla Klepkova Vodova |
| author_sort | Pavla Klepkova Vodova |
| collection | DOAJ |
| description | Liquidity and profitability are two very important aspects of the banking business. The aim of this paper is to thoroughly evaluate the development of bank profitability and liquidity in the Polish banking sector and to analyze the link between profitability and liquidity ratios with the use of correlation analysis over the period 2007-2013. Liquidity of the Polish banking sector has decreased during this period. Small banks are the less liquid, the most dependent on other sources of funding and their net interbank position is the most vulnerable. Profitability of Polish banks could be higher. With the exception of interest margin, profitability increases with size of the bank. The values of the Pearson´s correlation coefficient showed mixed results: the links between profitability and liquidity ratios differ among individual groups of banks. |
| first_indexed | 2024-03-09T07:18:02Z |
| format | Article |
| id | doaj.art-92106e51fc214a088f1392b4c4c66b8d |
| institution | Directory Open Access Journal |
| issn | 2543-9103 2543-411X |
| language | English |
| last_indexed | 2025-03-22T04:24:06Z |
| publishDate | 2016-04-01 |
| publisher | University of Applied Sciences in Bielsko-Biała |
| record_format | Article |
| series | Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej |
| spelling | doaj.art-92106e51fc214a088f1392b4c4c66b8d2024-04-28T06:31:19ZengUniversity of Applied Sciences in Bielsko-BiałaZeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej2543-91032543-411X2016-04-01201BANK LIQUIDITY AND PROFITABILITY IN THE POLISH BANKING SECTORPavla Klepkova Vodova0Bielsko-Biała School of Finance and LawLiquidity and profitability are two very important aspects of the banking business. The aim of this paper is to thoroughly evaluate the development of bank profitability and liquidity in the Polish banking sector and to analyze the link between profitability and liquidity ratios with the use of correlation analysis over the period 2007-2013. Liquidity of the Polish banking sector has decreased during this period. Small banks are the less liquid, the most dependent on other sources of funding and their net interbank position is the most vulnerable. Profitability of Polish banks could be higher. With the exception of interest margin, profitability increases with size of the bank. The values of the Pearson´s correlation coefficient showed mixed results: the links between profitability and liquidity ratios differ among individual groups of banks. https://91.241.33.211:443/index.php/asej/article/view/472profitability ratiosliquidity ratioscommercial bankscorrelation analysis |
| spellingShingle | Pavla Klepkova Vodova BANK LIQUIDITY AND PROFITABILITY IN THE POLISH BANKING SECTOR Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej profitability ratios liquidity ratios commercial banks correlation analysis |
| title | BANK LIQUIDITY AND PROFITABILITY IN THE POLISH BANKING SECTOR |
| title_full | BANK LIQUIDITY AND PROFITABILITY IN THE POLISH BANKING SECTOR |
| title_fullStr | BANK LIQUIDITY AND PROFITABILITY IN THE POLISH BANKING SECTOR |
| title_full_unstemmed | BANK LIQUIDITY AND PROFITABILITY IN THE POLISH BANKING SECTOR |
| title_short | BANK LIQUIDITY AND PROFITABILITY IN THE POLISH BANKING SECTOR |
| title_sort | bank liquidity and profitability in the polish banking sector |
| topic | profitability ratios liquidity ratios commercial banks correlation analysis |
| url | https://91.241.33.211:443/index.php/asej/article/view/472 |
| work_keys_str_mv | AT pavlaklepkovavodova bankliquidityandprofitabilityinthepolishbankingsector |