Bank Liquidity Risk: Analysis and Estimates

Jasienė, Meilutė; Martinavičius, Jonas; Jasevičienė, Filomena; Krivkienė, Gražina

doi:10.3846/bme.2012.14

Cited by 5 publications

(5 citation statements)

References 2 publications

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“…In Lithuania, banks represent the major part of the financial market. The importance of banks stems from the role of the banks in managing risks, increasing liquidity between lenders and borrowers, decreasing transaction costs and facilitating development of businesses (Jasevičienė, 2013). Since the importance of the banking sector and its stability is beyond doubt, most authors claim that the collapse of a bank, in contrast to the bankruptcy of any other institution, has a huge impact upon the whole society.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Risk is defined as a probability of unspecified future events, a foregone or a missed opportunity, or a positive or a negative deviation from the projected outcome, the probability of damage or profit (Jasevičienė, 2013, Garbanov, 2010. It is for this reason that the solvency and the liquidity risk in banking is an object to be managed in order to ensure a successful performance of the banking system.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Risk may also be mitigated by the ex-ante impact on banks, the method, however, being significantly more complex. Banks are required to maintain the level of risk enabling them to comply, at any time, with the prudential requirements established by the Bank of Lithuania (Jasevičienė, 2013). Banks strive to assume more risk (because of competition) and to maximise their profits; at the same time, supervisory authorities seek to control the activities of banks with a view to mitigating the operating risk of banks.…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Capital Adequacy (Solvency) and Liquidity Risk Management: Analysis, Evaluation, and Possibilities for Improvement

Žuk-Butkuvienė¹,

Vaitulevičienė²,

Staroselskaja

2014

ECO

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The main purpose of the present research is to analyse the supervision, capital adequacy (solvency) and liquidity prudential norms, limits and requirements of commercial banks operating in Lithuania, as well as to assess the quality of capital adequacy and liquidity risk management impact on the banking industry.The paper consists of two main parts: the analysis of literature and legislation, and the research, its results, recommendations, and conclusions. The first part reviews the theoretical analysis of the level of banking supervision and capital adequacy, liquidity prudential standards value. The authors have examined the banks' supervising authorities and the regulation of their activities. There were are presented prudential standards of capital adequacy and liquidity for banks operating in Lithuania, their values'change after the Basel III reforms, and the scientific opinion about their development and tightening standards.The authors have carried out a study of the analysis of capital adequacy and liquidity prudential requirements, their evaluation and possibilities for improvement in banks operating in Lithuania. The analysis consists of the assessment of assets and liabilities of banks ensuring the prudential standards depending on the type of risk. The research revealed that the most important in banks' capital adequacy and liquidity risk management is quality control and the harmonization of bank assets and liabilities. Besides, it is offered to review the calculation of requirements and procedures, to impose additional limits to ensure the basic standards and an efficient banking security.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Capital Adequacy (Solvency) and Liquidity Risk Management: Analysis, Evaluation, and Possibilities for Improvement

Žuk-Butkuvienė¹,

Vaitulevičienė²,

Staroselskaja

2014

ECO

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“…In the end, banks make strategic decisions about their levels of risk and profit. The risk of losing the bank may have an impact on resources, income, and higher running costs that affects the operational costs and ultimately impact the capital adequacy of a bank (Jasiene, 2012). Only leverage that showed negative (0.00200) and significant (0.0226) effect to CAR.…”

Section: Global Fund Relationship With Financial Statements In Indonesiamentioning

confidence: 99%

“…The ability of banks to maintain liquidity is affected by the efficiency of the bank's risk management strategies in creating a foundation in business activities (Jasiene, 2012). In the end, banks make strategic decisions about their levels of risk and profit.…”

Section: Global Fund Relationship With Financial Statements In Indonesiamentioning

confidence: 99%

Technical Note: The Effect of The Fed’s Quantitative Easing Policy on the Performance of Listed Companies and the Banking Sector in Indonesia

Rizky¹

2015

AABFJ

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While the efficient market hypothesis suggests that stock price reflects the fundamental condition of companies, which could affect investors' decisions, this technical note reports empirical evidence that stock price is also influenced by the public's perception of the market situation. This note shows that the source of funds circulating in the Indonesia Stock Exchange is related to excess liquidity resulting from the policy of quantitative easing (QE) by developed countries' central banks. Banks funding assets with debt results in leverage relationships with the Capital Adequacy Ratio (CAR) negatively affected. Thus it is evident that the Indonesian banking strategy is "reactive" and is influenced by external factors. External factors can be influenced by global issues as well as internal (enterprise performance) issues. Therefore foreign and global issues may be important (perhaps dominant) in determining the perceptions of the Indonesian stock market. AbstractWhile the efficient market hypothesis suggests that stock price reflects the fundamental condition of companies, which could affect investors' decisions, this technical note reports empirical evidence that stock price is also influenced by the public's perception of the market situation. This note shows that the source of funds circulating in the Indonesia Stock Exchange is related to excess liquidity resulting from the policy of quantitative easing (QE) by developed countries' central banks. Banks funding assets with debt results in leverage relationships with the Capital Adequacy Ratio (CAR) negatively affected. Thus it is evident that the Indonesian banking strategy is "reactive" and is influenced by external factors. External factors can be influenced by global issues as well as internal (enterprise performance) issues. Therefore foreign and global issues may be important (perhaps dominant) in determining the perceptions of the Indonesian stock market.

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Liquidity risk exposure and its determinants in the banking sector: A comparative analysis between Islamic, conventional and hybrid banks

Mohammad

Asutay

Dixon

et al. 2020

Journal of International Financial Markets, Institutions and Mo

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Bank Liquidity Risk: Analysis and Estimates

Cited by 5 publications

References 2 publications

Capital Adequacy (Solvency) and Liquidity Risk Management: Analysis, Evaluation, and Possibilities for Improvement

Capital Adequacy (Solvency) and Liquidity Risk Management: Analysis, Evaluation, and Possibilities for Improvement

Technical Note: The Effect of The Fed’s Quantitative Easing Policy on the Performance of Listed Companies and the Banking Sector in Indonesia

Liquidity risk exposure and its determinants in the banking sector: A comparative analysis between Islamic, conventional and hybrid banks

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