The Impact of Banking Performance on Liquidity Creation in Banking System

In today's world, the banking industry plays a decisive role in the development and economic growth of countries due to its diverse financial and credit services, and can be considered as a driving force, an accelerator, and a balanced economy. Since the efficiency of each system is evaluated a...

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Main Authors: fateme rezazadeh karsalarei, mostafa sargolzaee
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2019-12-01
Series:مطالعات تجربی حسابداری مالی
Subjects:
Online Access:https://qjma.atu.ac.ir/article_10958_5f04cc2fa384949f3cf8d44b9b3820e8.pdf
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author fateme rezazadeh karsalarei
mostafa sargolzaee
author_facet fateme rezazadeh karsalarei
mostafa sargolzaee
author_sort fateme rezazadeh karsalarei
collection DOAJ
description In today's world, the banking industry plays a decisive role in the development and economic growth of countries due to its diverse financial and credit services, and can be considered as a driving force, an accelerator, and a balanced economy. Since the efficiency of each system is evaluated according to the efficiency of that system, the efficiency of the banking system is also measured through its return on equity holders and depositors. The more profitable the banks are, the more trustworthy the customers show than the banks, and they still keep their savings with the banks. The purpose of this paper is to examine the relation between the performance and the nature of banks' liquidity. To achieve this goal, data from 18 banks during 2009-2017 and using general momentary method (GMM) have been used. In this study, studied to calculate the liquidity index in the banking system, and emphasizing the structure of the balance sheet of the country's banking network. The results show the bank’s performance has a positive and significant effect with the creation of liquidity. Other results also show that the rate of economic growth, the ratio of capital to assets and the inflation rate have positive effects and Z-score has a negative effect on liquidity creation of banks.
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spelling doaj.art-dc8d261a53074c38ab2eddfd5ee1bad52023-12-23T10:37:34ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192019-12-01166411313310.22054/qjma.2020.42572.200610958The Impact of Banking Performance on Liquidity Creation in Banking Systemfateme rezazadeh karsalarei0mostafa sargolzaee1Ph.D. Candidate, Department of Economics, Faculty of Economic, Shahid Chamran University, Ahwaz, Iran.associate professor - allameh tabatabai universityIn today's world, the banking industry plays a decisive role in the development and economic growth of countries due to its diverse financial and credit services, and can be considered as a driving force, an accelerator, and a balanced economy. Since the efficiency of each system is evaluated according to the efficiency of that system, the efficiency of the banking system is also measured through its return on equity holders and depositors. The more profitable the banks are, the more trustworthy the customers show than the banks, and they still keep their savings with the banks. The purpose of this paper is to examine the relation between the performance and the nature of banks' liquidity. To achieve this goal, data from 18 banks during 2009-2017 and using general momentary method (GMM) have been used. In this study, studied to calculate the liquidity index in the banking system, and emphasizing the structure of the balance sheet of the country's banking network. The results show the bank’s performance has a positive and significant effect with the creation of liquidity. Other results also show that the rate of economic growth, the ratio of capital to assets and the inflation rate have positive effects and Z-score has a negative effect on liquidity creation of banks.https://qjma.atu.ac.ir/article_10958_5f04cc2fa384949f3cf8d44b9b3820e8.pdfcreation of liquidityprofitabilitygmm method
spellingShingle fateme rezazadeh karsalarei
mostafa sargolzaee
The Impact of Banking Performance on Liquidity Creation in Banking System
مطالعات تجربی حسابداری مالی
creation of liquidity
profitability
gmm method
title The Impact of Banking Performance on Liquidity Creation in Banking System
title_full The Impact of Banking Performance on Liquidity Creation in Banking System
title_fullStr The Impact of Banking Performance on Liquidity Creation in Banking System
title_full_unstemmed The Impact of Banking Performance on Liquidity Creation in Banking System
title_short The Impact of Banking Performance on Liquidity Creation in Banking System
title_sort impact of banking performance on liquidity creation in banking system
topic creation of liquidity
profitability
gmm method
url https://qjma.atu.ac.ir/article_10958_5f04cc2fa384949f3cf8d44b9b3820e8.pdf
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