The Basic Concepts and Feature of Bank Liquidity and Its Risk

Abiola Sekoni

MPRA Paper from University Library of Munich, Germany

Abstract: Liquidity is fundamental to the well-being of financial institutions particularly banking. It determines the growth and development of banks as it ensures proper functioning of financial markets. Inadequacy of liquidity causes adverse effect on the market values of asset.. Therefore studying and understanding liquidity has very important practical implications. However, understanding the term liquidity is an arduous task due the diversity in its meanings and connotations. This paper attempts to examine different liquidity definitions and the concepts as well as discusses sources of liquidity and its risk.

Keywords: Liquidity; Financial institution; Financial Markets; risk (search for similar items in EconPapers)
JEL-codes: P45 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-hpe
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:67389

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