Liquidity management strategies in the Czech banking sector

Jana Lastuvkova ()
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Jana Lastuvkova: Department of Finance, Faculty of Business and Economics, Mendel University in Brno

No 2014-47, MENDELU Working Papers in Business and Economics from Mendel University in Brno, Faculty of Business and Economics

Abstract: This paper focuses on the evaluation of the liquidity development in the banking sector of the Czech Republic. The evaluation is carried out using specific method of measurement - gross liquidity flows and their overall reallocation. This method allows determining liquidity for the banking sector as well as for the individual groups. The method is also based on liquidity flows, in addition in two forms - positive and negative, is thus the dynamic assessment of the liquidity in a perspective of its creation and outflow. This takes into account current trends in requirements for measuring and monitoring liquidity risk. Evaluation of the flows is supplemented by a correlation analysis to determine the main factors of the liquidity development. The results suggest that the studied groups of banks have different characteristics and are influenced by different factors. Medium-sized group of banks, standing between the two other groups, does not show a clear strategy of its own, but takes elements from the other two groups of banks.

Keywords: Czech banking sector; measurement of the bank liquidity; liquidity flows; liquidity strategies (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Pages: 17
Date: 2014-08
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-cse and nep-ger
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