Comparison between the Velocities of Escaped Savings with than of Financial Liquidity

The article presents the results of a study of the banking system stability under the conditions of increased financial support from the state during the financial and economic destabilization. The banking system stability in the euro zone has been analyzed to assess the prospects for monetary and financial development in Ukraine. The European experience proves that strengthening relations between banks and the state amidst the financialization process is harmful. The author of the article treats this relationship as a closed-loop problem of public and financial liquidity circulation, which leads to financial bleeding in the real economy and destabilization of the financial system, as a whole. This problem requires to be fixed by reducing banking transactions with government securities. The article gives facts proving that the search for solutions to this problem made in the European financial space has become one of the factors of financial and institutional transformations in the euro zone and the EU, in general, and has led to the creation of a banking union. The newly introduced legal framework has manifested itself as unable to stimulate efficient financial distribution. It has also been demonstrated that due to the public and financial liquidity circulation the banking system becomes subject to profound redesigning, thus losing its ability to conduct effective financial distribution in the real sector of economy.

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Financial liquidity: An emergent phenomena

Journal of Dynamics & Games ◽

10.3934/jdg.2020015 ◽

2020 ◽

Vol 7 (3) ◽

pp. 209-224

Author(s):

Alfredo Daniel Garcia ◽

◽

Martin Andrés Szybisz

Keyword(s):

Emergent Phenomena ◽

Financial Liquidity

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Does geopolitical risk strengthen or depress oil prices and financial liquidity? Evidence from Saudi Arabia

Energy ◽

10.1016/j.energy.2019.116003 ◽

2019 ◽

Vol 187 ◽

pp. 116003 ◽

Cited By ~ 32

Author(s):

Chi-Wei Su ◽

Khalid Khan ◽

Ran Tao ◽

Moldovan Nicoleta-Claudia

Keyword(s):

Saudi Arabia ◽

Oil Prices ◽

Financial Liquidity

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Impact of financial liquidity and solvency on cost efficiency: evidence from US banking system

Studies in Economics and Finance ◽

10.1108/sef-04-2019-0155 ◽

2020 ◽

Vol 37 (2) ◽

pp. 391-410

Author(s):

Kekoura Sakouvogui ◽

Saleem Shaik

Keyword(s):

Financial Crisis ◽

Cost Efficiency ◽

Stochastic Frontier Analysis ◽

Banking System ◽

Tobit Regression ◽

Content Type ◽

Frontier Analysis ◽

Financial Liquidity ◽

Domestic Banks ◽

The Cost

Purpose The purpose of this paper is to evaluate the importance of financial liquidity and solvency on US commercial and domestic banks’ cost efficiency while accounting for internal and external factors. Design/methodology/approach The Stochastic Frontier Analysis and Data Envelopment Analysis estimators are used to estimate the cost efficiency of 11,044 US commercial and domestic banks from 2005 to 2017. Using Tobit regression model, the importance of financial liquidity and solvency on cost efficiency is examined. Findings The results provide evidence that the financial liquidity and solvency negatively impact the cost efficiency of US commercial and domestic banks. Overall, US commercial and domestic banks were inefficient during the financial crisis in comparison to the tranquil period. The importance of financial solvency on the cost efficiency was not statistically significant, while the financial liquidity negatively collapsed because of contagion. Finally, the results provide evidence that the amount of total assets matters in the improvement of the cost efficiency. Originality/value This paper estimates and identifies the 2007-2009 financial crisis with liquidity, solvency or both financial factors.

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