Work

Impact of Macro Specific Factor and Bank Specific Factor on Bank Liquidity using FMOLS Approach

Year: 2019

Type: article

Abstract: By applying the fully modified ordinary least square (FMOLS), this study examines the impact of bank-specific factor and macro-specific factors on bank liquidity, for the period of 2000 to 2017. The bank specific factors include bank crises, bank size, total deposit, and profitability. While it considers a macro-specific factors GDP, inflation, monetary policy and unemployment. Findings reveal that based on time series data, we suggest that bank-specific and macro-specific factor significantly effect on bank liquidity. Empirical results reported that at 5 percent level of significance total deposit, GDP, bank size and unemployment have a negative impact on liquidity of the bank. While monetary policy, bank crisis and profitability have a positive impact on liquidity. Inflation has an insignificant relation with liquidity. The study reported new facts for increase more clear understanding of liquidity in a developing country like Pakistan.

Source: Emerging Science Journal

DOI: 10.28991/esj-2019-01179

Authors: Hamid Mahmood, Samia Khalid, Abdul Waheed, Muhammad Arif

Institutions: Xi'an Jiaotong University, Foundation University Islamabad, University of Engineering and Technology Lahore

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $40