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Assessing the factors affecting the liquidity risk in Jordanian commercial banks: a panel data analysis

Alrwashdeh, Nusiebeh Nahar Falah, Ahmed, Rizwan, Danish, Muhammad Hassan, Shah, Qasim (2023) Assessing the factors affecting the liquidity risk in Jordanian commercial banks: a panel data analysis. International Journal of Business Continuity and Risk Management, 13 (1). pp. 84-99. E-ISSN 1758-2172. (doi:10.1504/IJBCRM.2023.130304) (Access to this publication is currently restricted. You may be able to access a copy if URLs are provided) (KAR id:103442)

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Abstract

One of the main purposes of banks' risk management is to control credit and liquidity risk which are the main sources of risk. This research explores factors affecting liquidity risk of commercial banks operating in Jordan, spanning from 2003 through 2017. The sample of the study includes all commercial banks by employing pooled OLS and panel 2SLS econometric techniques. Findings of the study show that bank size, return on assets (ROA), capital adequacy ratio (CAR), risk, non-performing loans (NPL), T-equality and T-liability have a positive impact on liquidity risk. While return on equity (ROE) shows the negative and significant impact on the liquidity risk. This study suggests that authorities should trace and monitor the determined internal factors that have a negative impact on the liquidity of banks to minimise bank run chances.

Item Type: Article
DOI/Identification number: 10.1504/IJBCRM.2023.130304
Uncontrolled keywords: Liquidity risk, Commercial bank, Jordan, ROA, CAR, Panel data
Subjects: H Social Sciences > HG Finance
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Funders: University of Kent (https://ror.org/00xkeyj56)
Depositing User: Rizwan Ahmed
Date Deposited: 25 Oct 2023 11:46 UTC
Last Modified: 09 Jan 2024 04:22 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/103442 (The current URI for this page, for reference purposes)

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