The Effect of Liquidity Risk on the Performance of Commercial Banks

Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 4, Issue 6

Abstract

Banks, as the most important financial institutions, have a determinant role in circulating currency and wealth of the society and enjoy a special position in financial system. Therefore, the desired and effective performance of banks can create important effects on the development of different economic sectors and increase in the quantitative levels of the output. This study attempts to examine the effect of liquidity risk on the performance of commercial banks using of panel data related to commercial banks of Iran during the years 2003 to 2010. In the estimated research model, two groups of bank-specific variables and macroeconomic variables are used. The results of research show that the variables of bank's size, bank's asset, gross domestic product and inflation will cause to improve the performance of banks while credit risk and liquidity risk will cause to weaken the performance of bank.

Authors and Affiliations

Naser Ail Yadollahzadeh Tabari| Department of Economics, Babol Branch, Islamic Azad University, Babol, Iran, nasertabari@yahoo.com, Mohammad Ahmadi| Department of Economics, Babol Branch, Islamic Azad University, Babol, Iran, Ma'someh Emami| Department of Economics, Babol Branch, Islamic Azad University, Babol, Iran

Keywords

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  • EP ID EP5512
  • DOI -
  • Views 313
  • Downloads 22

How To Cite

Naser Ail Yadollahzadeh Tabari, Mohammad Ahmadi, Ma'someh Emami (2013). The Effect of Liquidity Risk on the Performance of Commercial Banks. International Research Journal of Applied and Basic Sciences, 4(6), 1624-1631. https://europub.co.uk/articles/-A-5512