 The Impact of Systemic Liquidity Risk on Stability of the Polish Economy (Wplyw systemowego ryzyka plynnosci na stabilnosc gospodarki polskiej)Jerzy Piotr Gwizdala ()
Problemy Zarzadzania, 2015, vol. 13, issue 55, 19-29 Abstract: An increase in the risk is essential for the economy and its stability. Higher liquidity risk in the system causes lower capacity to absorb shocks and higher probability of adverse trends propagation. The banking system, having less liquidity reserves, is more vulnerable to the phenomenon of “pro-cyclicality”, i.e. the strengthening of economic cycles. Short- and long-term microeconomic risks in banks may, in a situation of liquidity tension, lead to significant inhibition of economic growth. An increase in liquidity risk impairs the mechanisms of monetary policy, whereas a growth of potential burden on the Bank Guarantee Fund generates the risk of a banking crisis becoming a sovereign crisis. The existence of currency liabilities and long-term currency liquidity risk expose the Polish economy to a stronger transmission of the crisis from abroad. Keywords: risk; system; liquidity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sgm:pzwzuw:v:13:i:55:y:2015:p:19-29 Access Statistics for this article More articles in Problemy Zarzadzania from University of Warsaw, Faculty of Management Contact information at EDIRC. |
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