The Determinants of Bank Liquidity: Case of Tunisia

Authors

  • Mohamed Aymen Ben Moussa

Abstract

Liquidity is an important variable for the bank and the banking system components. So it is interesting to show its determinants. Thus, we used a sample of 18 banks in Tunisia in for 2000-2010period. We estimated two measures of liquidity (liquid assets / total assets; total loans / total deposits). Through the method of static panel and method of panel dynamic, we found that (financial performance, capital / total assets, operating costs/ total assets, growth rate of GDP, inflation rate, delayed liquidity) have significant impact on bank liquidity while (size, total loans / total assets, financial costs/ total credits,  total deposits / total assets) does not have a significant impact on bank liquidity.

Keywords: bank; bank liquidity; static panel; Tunisia; dynamic panel

JEL Classifications: C5; G2; G21 

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Published

2015-01-06

How to Cite

Ben Moussa, M. A. (2015). The Determinants of Bank Liquidity: Case of Tunisia. International Journal of Economics and Financial Issues, 5(1), 249–259. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/1036

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