Abstract:
The last global financial crisis reemphasized the importance of liquidity for the wellfunctioning of the banking sector and the financial markets. Given the importance of banks in the Lebanese financial markets, this paper aims to identify the determinants of liquidity of Lebanese commercial banks for the period from 2005 to 2013. Results show that bank liquidity is positively related to bank size and interbank rate, and negatively related to loan growth rate, inflation and the financial crisis. The impact of capital, economic growth, unemployment, short term interest rate, and lending interest rate on liquidity is not conclusive. No difference was found between listed and unlisted banks.
Citation:
El Khoury, R. (2015). Liquidity in Lebanese commercial banks and its determinants. Academy of Accounting and Financial studies journal, 19(3), 57-74.
