The Behaviour of Bank’s Liquidity in the Light of Financial Crisis - A Study of Indian Commercial Banks
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https://doi.org/10.33516/maj.v55i11.90-93pAbstract
Balance Sheet of every bank gives the real picture regarding its financial position at any given point of time. Bank’s Liquidity is said to be the capacity of a bank to fund increase in assets and meet both expected as well as unexpected cash and collateral obligations as they become due. To specify the factors that have significant association in determining the variation in bank’s liquidity and the behaviour of same in accordance with any probable future financial crisis the following study has been conducted with certain key bank specific variable and macroeconomic variables for a sample of 60 Indian Commercial Banks for a sample period of 11 years using panel data techniques. SIZE, CRAR, EFF, ROA, OPDT, CER, NNPA are significant for the original model. CRAR and EFF are significant for the crisis interaction model. In this paper only the crisis interaction model has been reported and given preference.Downloads
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