Bank Liquidity and Its Influencing Factors Evidence from China
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| Dokumentumtípus: | Diplomadolgozat |
| Kulcsszavak: | Chinese commercial banks LCR liquidity influencing factors liquidity risks panel data model |
| Online Access: | http://dolgozattar.uni-bge.hu/41187 |
| Kivonat: | This dissertation examines the factors that impact the Chinese domestic commercial banks’ liquidity empirically, both internal and external factors are included and a fixed effects model is used. Two regulatory indicators from Basel III, namely LCR and NSFR, are used as independent variables. It is found that whether a bank is state-owned or non-state-owned has no effect on its liquidity. It is also shown that major events such as financial crises have a visible impact on liquidity and its influencing factors. Based on these findings, it is suggested that banks should improve their liquidity rather than just meeting regulatory requirements and that reducing leverage can help reduce liquidity risk with the use of convertible bonds. Since the results also find that liquidity and economic cycles are consistent, it is advisable to be alert to liquidity risk issues when the economy is in a state of contraction. |
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