scholarly journals The influence of liquidity risk on efficiency in rural banks: the moderating role of interbank borrowing fund

2021 ◽  
Vol 17 (2) ◽  
pp. 63-79
Author(s):  
Meliza Zafrizal ◽  
Rubayah Yakob ◽  
Soo Wah Low
Keyword(s):  
Random Effect ◽  
Liquidity Risk ◽  
Negative Influence ◽  
Third Party ◽  
Moderator Variable ◽  
Alternative Source ◽  
Long Run ◽  
Effect Regression ◽  
Low Efficiency

High competition in Indonesian banking sectors has resulted in the non-survival of rural banks in Indonesia in the long run. The lack of third-party funding becomes one of the most important factors that cause many rural banks to face liquidity risk. Hence, many rural banks use interbank borrowing fund as an alternative source of funding in order to meet their liquidity requirement. Moreover, this risk also leads to many rural banks in Indonesia having to deal with low efficiency problem. This research examines not only the influence of liquidity risk on efficiency but also the role of interbank borrowing fund as a moderator variable. Random effect regression analysis reveals that liquidity risk has negative influence on efficiency. Furthermore, as moderator variable, interbank borrowing fund is shown to enhance the influence of liquidity risk on efficiency. This research becomes guidance for rural banks in managing their liquidity risk and efficiency. In addition, this research also can provide direction for authority in setting some regulation regarding to rural banks’ activities in interbank market.

scholarly journals Liquidity Risk and Bank Performance: An Empirical Test for Tunisian Banks

2017 ◽  
Vol 7 (1) ◽  
pp. 46 ◽  
Author(s):  
Abdelaziz Hakimi ◽  
Khemais Zaghdoudi
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Credit Risk ◽  
Empirical Test ◽  
Random Effect ◽  
Liquidity Risk ◽  
Bank Performance ◽  
International Financial Crisis ◽  
Effect Regression ◽  
The Relationship

An important part of banking literature was interested in the relationship between credit risk and bank performance. However, only few studies investigated the association between liquidity risk and bank performance. The aim of this paper is to study the effect of liquidity risk on the Tunisian bank performance. To this end, we used a sample of 10 Tunisian banks over the period 1990-2013. By applying panel data method, precisely random effect regression, results show that liquidity risk decreases significantly Tunisian bank performance. Also, findings indicate that international financial crisis and inflation act negatively and significantly on bank performance.

scholarly journals Analisis Faktor-Faktor yang Memengaruhi Risiko Likuiditas pada Bank Umum Syariah di Indonesia

2020 ◽  
Vol 1 (1) ◽  
pp. 71-84
Author(s):  
Regita Nur Fitriani ◽  
Dimas Sumitra Danisworo
Keyword(s):  
Descriptive Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Liquidity Risk ◽  
Capital Adequacy ◽  
Third Party ◽  
Islamic Banks ◽  
Quantitative Descriptive Analysis ◽  
Factors Affecting ◽  
Quantitative Descriptive

This research was conducted to analyze what factors affecting the liquidity risk in Islamic Banks in Indonesia. In this study, the measurement of liquidity risk will be seen from other factors that can affects liquidity risk including Cash Ratio (CsR), Size of Bank (SOB), Third Party Funds (DPK), Capital Adequacy Ratio (CAR), Net Working Capital (NWC), and Investment (INV). The research method used in this research is a quantitative descriptive analysis uses the Eviews 9 program. The object of this analysis is twelve Islamic Banks in Indonesia which have been operating from 2014-2018. The analysis technique used is multiple regression analysis with Random Effect Model (REM) regression model. The results of this study indicate that CsR, SOB, and NWC have a significant effect on liquidity risk. While DPK, CAR, and INV have an insignificant effect on liquidity risk.

scholarly journals The Impact of Macroeconomic Factors on Banks Liquidity Risk: Evidence From Pakistan

2021 ◽  
Vol 5 (2) ◽  
pp. 155-163
Author(s):  
Muhammad Yar Khan ◽  
Javaria Liaqat ◽  
Tahira Awan ◽  
Wajid Khan
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Random Effect ◽  
Liquidity Risk ◽  
Price Inflation ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Effect Regression ◽  
Time Invariant ◽  
The Impact

The aim of the study is to identify the factors that influence liquidity risks of the banks by considering the panel of 18 top listed banks in Pakistan during a period of 2010 -2016. The study employed panel random effect regression model to absorb time-invariant shocks, which gives robust inferences. The results of liquidity risk confirmed that the country’s economic growth and price inflation further escalates liquidly risk while, FDI inflows reduces liquidity risks in Pakistani’s banks, thus it is concluded that bank’s liquidity risks required easy monetary policy to advancing loans and charging low interest rate, which ultimately will increase ROA, and ROE, while it would helpful to decrease high risk of bank’s liquidly in a given country.

Does Financing Structure Relates to Liquidity Risk? A Comparative Study of Islamic and Conventional Banks of Pakistan

2021 ◽  
Vol 1 (1) ◽  
pp. 72-85
Author(s):  
Hussain Mohi-ud-Din Qadri ◽  
Atta UI Mustafa ◽  
Hassnian Ali
Keyword(s):  
Banking Sector ◽  
Random Effect ◽  
Random Effect Model ◽  
Liquidity Risk ◽  
Strong Relationship ◽  
Fixed Effect Model ◽  
Long Run ◽  
Effect Model ◽  
Short Run ◽  
Conventional Banks

The purpose of this paper is to find out whether financing in specific sectors increase bank liquidity risk and how this goes on with both Islamic and conventional banks. The paper used pooled regression, fixed effect model and random effect model decided on the basis of dummy joint significant test. The result shows that only financing concentration (SPEC) proved to have significant association with Islamic and overall banking sector for short run. And all other banks specific variables are unable to show a significant result. While the macroeconomic variable GDP and Inflation have a strong relationship in both long run and short run time period. This paper add value to the existing literature on liquidity risk under the new indicators issued by Basel III.

scholarly journals PENGARUH RISIKO LIKUIDITAS DAN LEVERAGE TERHADAP KINERJA BANK YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2010--2015

2018 ◽  
Vol 15 (2) ◽  
pp. 189-209
Author(s):  
Novia Utami
Keyword(s):  
Significant Influence ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Liquidity Risk ◽  
Third Party ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Effect Model ◽  
Liquidity Gap

This empirical study aims for examining the influence of liquidity risk on bank performance from the period 2010 to 2015 listed on Indonesia Stock Exchange. The measurement of liquidity risk will involve deposits or third-party fund, cash, and liquidity gap whereas the leverage will involve total debts to total assets as the independent variables. Meanwhile, the dependent variables of this study involve ROA and Tobin’s Q. This study was conducted under the purposive sampling method which involved 22 banks as samples. This study also used a panel data regression method and three testing models, including Common Effect Model, Fixed Effect Model, and Random Effect Model. The findings suggest a positive and significant influence of the third-party fund on ROA and Tobin’s Q. In contrast, the liquidity gap has a negative and significant influence on ROA and Tobin’s Q. Besides, the findings also suggest a positive and significant influence of cash on ROA and negatively significant on Tobin’s Q. The leverage has negative and significant influence on ROA and positively significant on Tobin’s Q.

The Problem of Identifying and Modeling the Relationship between Monetary Factor and Inflation in the Russian Economy

2008 ◽  
pp. 61-76
Author(s):  
A. Porshakov ◽  
A. Ponomarenko
Keyword(s):  
Money Supply ◽  
Money Demand ◽  
Russian Economy ◽  
Long Run ◽  
Complex Approach ◽  
Wide Range ◽  
Long Time ◽  
The Relationship ◽  
Supply Side Factors

The role of monetary factor in generating inflationary processes in Russia has stimulated various debates in social and scientific circles for a relatively long time. The authors show that identification of the specificity of relationship between money and inflation requires a complex approach based on statistical modeling and involving a wide range of indicators relevant for the price changes in the economy. As a result a model of inflation for Russia implying the decomposition of inflation dynamics into demand-side and supply-side factors is suggested. The main conclusion drawn is that during the recent years the volume of inflationary pressures in the Russian economy has been determined by the deviation of money supply from money demand, rather than by money supply alone. At the same time, monetary factor has a long-run spread over time impact on inflation.

The Role of Technological Change in the Long-run Global Economy Forecasting

2013 ◽  
pp. 97-116 ◽  
Author(s):  
A. Apokin
Keyword(s):  
Technological Change ◽  
Data Quality ◽  
Long Range ◽  
Global Economy ◽  
World Economy ◽  
Qualitative Approaches ◽  
Long Run ◽  
The World ◽  
National Economies

The author compares several quantitative and qualitative approaches to forecasting to find appropriate methods to incorporate technological change in long-range forecasts of the world economy. A?number of long-run forecasts (with horizons over 10 years) for the world economy and national economies is reviewed to outline advantages and drawbacks for different ways to account for technological change. Various approaches based on their sensitivity to data quality and robustness to model misspecifications are compared and recommendations are offered on the choice of appropriate technique in long-run forecasts of the world economy in the presence of technological change.

Oral Testimony as Historical Source Material for the Reconstruction of the Judicial History of Shipping in India (1600-1800)

2019 ◽  
Vol 7 (1) ◽  
Author(s):  
Mir Kamruzzman Chowdhary
Keyword(s):  
Nineteenth Century ◽  
Source Material ◽  
Maritime History ◽  
Historical Source ◽  
Alternative Source ◽  
Oral Testimony ◽  
History Of ◽  
Judicial History ◽  
Source Materials

This study was an attempt to understand how the available alternative source materials, such as oral testimonies can serve as valuable assets to unveiling certain aspects of maritime history in India. A number of themes in maritime history in India failed to get the attention of the generation of historians, because of the paucity of written documents. Unlike in Europe, the penning down of shipping activities was not a concern for the authorities at the port in India. The pamphlets and newsletters declared the scheduled departure of the ship in Europe but, in India, this was done verbally. Therefore, maritime history in India remained marginalised. Hence, in this article, I make an endeavour to perceive how the oral testimonies can help shed some new light on certain aspects of maritime history in India, such as life on the ship, maritime practices, and perceptions among the littoral people in coastal societies. This article also outlines an approach on how the broader question on the transformation of scattered maritime practices among coastal societies can be adapted and transferred into an organised institution of law by the nineteenth century, and how these can be pursued in future. I also suggest in this article that the role of Europeans, especially the British, in the process of transformation, can be investigated further through oral testimonies in corroboration with the colonial archival records.

KING PEPI’S ROLE IN FORMING MEMPHIS, THE FUTURE CAPITAL OF EGYPT

2020 ◽  
pp. 40-56
Author(s):  
R. A. Orekhov ◽  
Keyword(s):  
Negative Influence ◽  
Common Point ◽  
Point Of View ◽  
High Priest ◽  
Old Kingdom ◽  
The Future ◽  
State Capital

There is a common point of view in Egyptology that Memphis was a state capital since the earliest times and that its protecting gods were Ptah and his spouse Sekhmet. Arguing this concept, the author tries to find the reason why a pyramid city of Pepi I — Mennefer — became a core of the future capital. The main conclusion is following: Constructing his pyramid complex, Pepi I probably included into it a cult center of Habes where Bastet and Imhotep, a high priest of Ra, were worshiped. Imhotep, a companion of the king Djoser, was known as a priest and charmer who tamed the fiery forces of Sirius associated with Bastet, after which the great drought was over. To commemorate this, New Year celebration and the first sun calendar were established. Imhotep’s tomb became an important cult place, where ceremonies important for surviving of the Egyptian state were conducted. In the second half of the Old Kingdom period the Nile started to flood much less, which led to the decline of agriculture. Thus, the role of the cult center of Habes and Imhotep grew greatly. By including Habes, Pepi protected the dominion of his pyramid city from negative influence of Bastet and decreased flooding. The fact that Mennefer was a successor of the aforementioned cult center determined its capital functions in future.

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