Zimbabwean Commercial Banks Liquidity and Its Determinants
Journal Title: International Journal of Empirical Finance - Year 2014, Vol 2, Issue 2
Abstract
The liquidity problems are bedeviling Zimbabwean commercial banks since the introduction of multicurrency system and this is impacting the economic development. After the 2003 to 2004 liquidity crisis, the central bank has re-emphasised on liquidity needs, and thus liquidity is very important for functioning of financial markets and the banking sector. The aim of this paper is therefore to identify determinants of liquidity of Zimbabwe commercial banks. The data cover the period from January 2010 to December 2011. The regression analysis was used and it has been found that there is a positive link between bank liquidity and capital adequacy, total assets, gross domestic product and bank rate. We have found that the adoption of multi-currency, inflation rate and business cycle have a negative impact on liquidity. It seems the banks size and their liquidity is positively correlated.
Authors and Affiliations
Wilbert Chagwiza
Keywords
Related Articles
- EP ID EP27138
- DOI -
- Views 457
- Downloads 13
Efficiency Analysis of Conventional vs. Islamic Microfinance: An Appraisal for Sustainability in Pakistan
Microfinance has emerged as an impressive tool for poverty alleviation in global developing economies of all of the continents. Critiques have questioned some of the features of conventional system of microfinance whic...
Real Exchange Rate Volatility and Foreign Direct Investment Inflows: The Ghanaian Experience
Foreign Direct Investment (FDI) has played a critical role in the economic growth and development of many countries. This critical role has motivated studies to investigate the sources or causes of FDI inflows. This st...
The Governance Framework for Banks in the UK
This paper discusses the regulatory and corporate governance framework for banks in the United Kingdom (UK). Prior to the 2008 Global Financial Crisis (GFC), there was a ‘tripartite’ regulatory system involved in the r...
The Dynamic Relationship between Stock Volatility and Trading Volume from the Athens Stock Exchange
The aim of this study is to examine the relationship between trading volume, change in trading volume and returns of Athens Stock Exchange index for the period of 25 June 2014 until 9 May 2014 through the comparison of...
Empirical Testing for Weak Form Hypothesis of Emerging Capital Markets: A Comparative study of Jordan’s ASE and Turkey’s BORSA IST
The purpose of the study is to empirically test the Weak Efficient Form Hypothesis for two emerging stock markets, which are: Amman Stock Exchange, (ASE) and Turkish Stock Exchange (BORSA Istanbul) through examining the...