OPTIMIZING BANK LIQUIDITY IN CENTRAL AND EASTERN EUROPE

Ionica Munteanu ()

Review of Economic and Business Studies, 2013, issue 11, 83-90

Abstract: This research paper responds to the current international concern in bank liquidity and offers a model for the optimization of the bank liquidity level, by identifying the marginal impact of the bank liquidity ratio on bank profitability. The non-linear relationship between these two variables is validated through the GMM procedure, on a panel of Eastern and Central European commercial banks over the period 2003-2010. The optimal level of bank liquidity resulted after getting the maximum condition for return on equity and return on assets, as measures of profitability, enhances the recent financial crisis effects.

Keywords: bank liquidity; profitability; optimum; marginal impact; non-linear regression (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://rebs.feaa.uaic.ro/articles/pdfs/157.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aic:revebs:y:2013:i:11:munteanui

Access Statistics for this article

More articles in Review of Economic and Business Studies from Alexandru Ioan Cuza University, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Sireteanu Napoleon-Alexandru ().