The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks

Autor: Abir Boulenfad, Khadra Dahou, Ishaq Hacini
Jazyk: angličtina
Rok vydání: 2021
Předmět:
Zdroj: Emerging Markets Journal, Vol 11, Iss 1, Pp 67-75 (2021)
ISSN: 2158-8708
Popis: This paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measured by the Return on Equity (ROE). Equity to total asset ratio (ETA) is used as the control variable. The study uses the panel data method (Pool, Fixed-effects and Random-effects) for testing the study hypothesis. The results show that liquidity risk has a significant negative impact on the financial performance measured by Saudi Arabian banks.
Databáze: OpenAIRE