Liquidity Dynamics of Banks in Emerging Market Economies

Mashamba, Tafirei

doi:10.2478/jcbtp-2022-0008

Abstract

This study examines the liquidity dynamics of banks in emerging market economies. Using annual data of 91 commercial banks from 11 countries, the study established that banks in emerging markets have target liquidity ratios they pursue and partially adjust due to market frictions. Overall, risk aversion and prudence play a significant role in explaining the liquidity dynamics by banks in emerging market economies.

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Liquidity Dynamics of Banks in Emerging Market Economies

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