The Impact of Liquidity and its Risk on the Bank’s Profitability “An Empirical Study on the Syrian Private Commercial Banks”


Abstract in English

Liquidity is considered to be one of the most important subject in the banking sector because it’s the key to maintain a secure financial position and it’s the main mean to gain the customer and depositor trust, and meet any obligation that might come up. In this paper we study effect of the liquidity and risk on the Syrian private bank’s profitability and the nature of this effect, to achieve this object we choose ten financial ratios for a sample of ten commercial banks between 2008 – 2014. The data have been basically collected from the financial statements of the studied banks. To analyze the research data we use one of the Panel Data Models which is the Fixed Effects Model. The data have been analyzed by using EViews 7. We conclude that the liquidity ratio have a significant negative effect on the bank’s profitability. liquidity risk have a significant positive effect on the profitability ratio .

References used

EHRHARDT، C. M. ; BRIGHAM، F. E. Financial Management: Theory and Practice، 13th ed.، Mason، OH: South-Western Cengage Learning، 2011، 1186
CHORAFAS، N. D. Liabilities، Liquidity، and Cash Management: Balancing Financial Risks، John Wiley & Sons، Inc، 2002، 337
KUMAR، M.; YADAV، C. G. Liquidity Risk Management in Bank: A Conceptual Framework، AIMA Journal of Management & Research، Vol. 7، Issue 2/4، 2013، 65 – 77

Download