Microsoft Word - 18949-Article Text-66560-writer2-new-final T Receive doi:10.5 Ca to allow achieve impact (2005… a positiv Keywo The Imp ed: March 1 5296/ajfa.v apital and li w a bank to e the financi of capital ….2020). By ve effect on rds: Capita pact of Faculty of 1, 2022 A 14i1.18946 iquidity are o cover any ial requirem on bank li y applying a n bank liqui al, bank, liqu Capita T Ben Mous Do economic s Univ Accepted: M URL: ht Ab two import y losses wi ments of ban iquidity. W a method of dity. uidity, Pane 54 al on Ba Tunisia ssa Moham octor in Fina sciences and versity of M May 30, 202 https://doi.or bstract rtant variabl ith its own nk activity. We used a s f panel stati el static, fix Asian ank Liq a med Aymen ance d manageme Manar 22 Pub rg/10.5296/ les in banki n funds. Als The aim of sample of c (fixed eff ed effects n Journal of F quidity: ent of Tunis blished: Jun ajfa.v14i1.1 ing industry so liquidity f this article 11 banks in fects) we fou Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macr : Case o s ne 1, 2022 18946 y. Capital is y is fundam e is to determ in Tunisia b und that cap ccounting 946-052X 14, No. 1 rothink.org/ of s needed mental to mine the between pital has 1. Intro The term can be can me liquidity repay b it has e prices. bank ca Capital turn into losses a cover an The obj method sectionw 2. Liter A-Bank Diamon cash so losses. L withdra compan Liquidit due wit explain bank. Traditio fund fo adequat deposito when bo B-Bank First, ca from it liquidat bank fro oduction m “liquidity bought or s et its sched y refers to t orrowers w extended wi Moreover, an quickly s is supposed o losses. Th and to build ny losses w jectif of our dology of 3 we will mak rature revie k liquidity nd; Rajan (2 o that banks Liquidity ca aws from d nies or gove ty is the ab thout incurr ed that the onally, bank or different te liquidity ors’ deman orrowers dr k capital apital is the s assets. Se ting all the om insolven y” has two sold quickly duled paym the latter me when due, m ithout payin because ba spillover to o d to protect his is where and mainta with its own r article is t 3 sections. ke the empi ew 2001) defin s can meet an also be d depositors o ernment. ility of the ring accept e viability o ks basically t groups wi in order t nd or withdr raw on com e accounting econd, it is assets at th ncy: the poi related but y in size wi ments or dem eaning but a eet deposit ng inordinat anks provid other banks a bank from we get to th ain con- fide funds. to analyse th The first s rical study. ed bank liq their oblig defined as th or requests bank to fun able losses of commerc y function a ithin the so to efficientl rawals, settl mitted cred g residual th s what is o heir accoun int at which 55 t distinct me ithout movi mands for f also depend withdrawal ately in fund de funding s. m all sorts o the two prin ence in a ba he impact o section is We finish b quidity as th gations on t he cash ava for borrow nd asset gro (BIS (2008 cial banks as financia ociety. The ly perform ling wholes dit facilities hat remains owed to the nting value. h its liabilitie Asian eanings in f ing the pric funds witho ds on the fo ls, and satis ding market to each oth of uninsured n- cipal func ank. Capital of capital on devoted to by conclusi he degree of time withou ailable with wers when g owth and m 8)). Indeed, depends on l intermedi erefore, ban their daily sale commit (FSC, 20 after subtra e banks’ ow Third, it is es exceed th n Journal of F finance. An ce. An instit out incurring rmer. A ban fy draws on ts or selling her, liquidit d and unsecu ctions of cap is needed t n bank liqui literature on of resear f ease of con ut incurring the banks t granting cre meet its obli , the Basel n the liquid aries and c nks are exp y obligation tments and 0). acting a ban wners—its s s the buffer he value of Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macr n asset is liq tution is liq ng high cost nk is liquid n lines of cr g assets at ty problems ured risks a pital – to ab to allow a b idity. We w review. In rch. nverting as g any unex to meet requ edit to indi igations as t Committee dity position collecting p pected to m ns such as provision o nk’s fixed li shareholder r that separ assets. ccounting 946-052X 14, No. 1 rothink.org/ quid if it quid if it ts. Bank if it can redit that fire-sale s at one apt to bsorb ank to will use a second sets into ceptable uests for ividuals, they fall e (2009) n of the points of maintain meeting of funds iabilities rs—after rates the More c (Rime(2 capital b The as interest section Asa bu agents; more ca risk of d C-The Using U between relation Hovarth issue is requirem GMM p They sh majority Distingu and liqu strength Basel I (2009)) they are Ilyas an by usin various Using g between Danism for the banks h Besides China. from ti perform capital tend 2001)). Ban buffer as sig sset portio t-earning lo of a bank's uffer; capita the deposit apital; it is default; and relationshi US data; B n capital a nship for the h and al (20 s interesting ments such panel estim how that ca y of banks a uin and al ( uidity for Eu hen their re III accords ). Their resu e exposed to nd Sarwar ( ng data set classificati generalized n the desire man (2018) e period (20 has dramatic s Xie (2016 This issue i ighten capi med regress ds to absorb nks raise ca gned by Lea on of a b oans (e.g., m capital incl al will help t insusrance easier for a d be able to ip between Berger and and liquidit e small bank 012) examin g because of h those in B mation frame apital negat are small. (2013) inve uropean and egulatory ca or when th ults show sm o higher illi 2018) explo of the ban ions of the b d least squa d variables explored th 001…2017) cally increas 6) investiga is interestin ital require sion analys b adverse apital when aven and Le bank's cap mortgages, ludes loan-l p to protect e agency, fro a bank to ab go on. capital and Bouwman ty creation ks. ned the rela f the potent Basel 3. Th ework on ex tively grang estigated the d US public apital buffer hey create mall banks d quidity. ored the imp nks of Paki banks (overa ares (GLS) for large ba he impact of ). The findi sed over tim ated the rel ng because o ements whi sis in simu 56 shocks and the portfol evine (2002 ital includ letters of cr loss reserve t debtholde om the cons bsorb losses d bank liqu (2009) fou n for the l ationship be tial impact hey perform xhausitive d ger causes e relationsh cly banks. O r when they more liqui do actuallay mpact of ban stan from ( all; small; m model; th anks and ne f bank capit ings indica me and it is lationship b of the poten ile propose ultaneous Asian d thus redu lio risk goe 2). des cash, g redit, and in s and any d ers; includin sequences o s when hit b uidity und that th large banks etween capit on liquidity med Grange data of Czec liquidity cr ip between On the whol y face high idity as me y strengthen nk capital on (2004…201 medium; lar he results sh egative for s tal on bank ate that the primarily d between liq ntial impact ed by new equation m n Journal of F uces the lik s up in ord government nter-bank lo debt it owes. ng small de of financial by an adver here is a po s; while th tal and liqu y creation f er causality ch banks; fr reation in th bank regul le;they fin er illiquidit easured by n the solven n liquidity c 13). The an rge). how the po small and m liquidity o liquidity c riven by lar quidity creat t on credit w capital ru model on t Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macr kelihood of der to keep t securitie oans). The li . epositors a distress. By rse stock; a ositive rela here is a n uidity creati from tighten y test in a d from (2000… his industry latory capita nd that bank ty as define Berger; Bo ncy standar creation in P nalysis is b ositive rela medium bank of 21 Turkis creation of rge banks. ation and ca weakness p ules in Ch the panel ccounting 946-052X 14, No. 1 rothink.org/ f failure up their es, and iabilities and their y having void the ationship negative on. This n capital dynamic …2010). y; where al buffer ks do not ed in the ouwman ds when Pakistan based on ationship ks. sh banks Turkish apital in problems hina. He data of chineas that sta creation Higher the ban capital t In addi through Le (20 Vitenam contribu findings creation creation Kayan banking between absorpt 3. Emp 3.1 Met We wil STB, B We mak The tem data wh data hav of degr improvi 3.2 Spe We esti (1) +b8. CF B0= con B1, b2… sebanks; wh ate owned c n and capita capital tend nks, which tends to dec ition; Gorto h another eff 018)investig mese banki uted a stron s alos indic n. In additi n and bank c and al (202 g liquidity n regulator ion hypothe pirical study thodology ll use a sam BNA,UIB; U ke a method mporal and hich offers ve also the ree of freed ing hence re ecification o imated The ALA i,t = b +b7CEAi,t FCi,t +b9.T nstant ……b11: Pa hich mainly commercial al. ds to mitiga hampers t crease liquid on, winton ffect “the cro gated the i ng between ng growth cate that of on the find capital in V 21) examin creation in ry capital a esis. y mple of 11 b UBCI)includ dology of pa individual d great poten advantage dom and red esults estim of model following m b0+b1 ROA t Tdepositi,t + arameters to y includes 2 l banks do ate the finan the credibil dity creation (2017) sho owding out interrelation n (2007…2 in liquidity ff balance s dings indica Vietnam. ned the effe n emerging and bank l banks (Attij ded in finan anel static ( dimension o ntial analys of increasin duce the pro mates. (Zagh model: Ai,t +b2 RO +b10 TPIB o be estimat 57 28 commerc not have s ncial fragili lity of its c n. ow that a h of deposits nip between 2015). The y cration in sheet activit ate a negati ect of regul Asian eco iquidity cre jari bank; A ncial market (estimation of our samp is by track ng the samp oblem of co hdoudi and H OEi,t +b3 N Bi,t +b11 TI ted Asian cial banks f significant r ity and enha commitmen higher capi s ”. n liquidity findings sh n Vietname ties only pl ive 2 way atory capita onomies. W eation, whi Amen bank; t of Tunisia by fixed eff ple allows u ing individu ple size, thi ollinearity b Hakimi (20 NIMi,t +b4 S INFi,t +Ei,t n Journal of F from (2004 relationship ances the b nts to depo ital ratio ca creation an how that la e between ( layed a sma relationship al and own We find a p ile inconsis ATB; BIA a for the p fects). us to use the ual behavio s leads to in between exp 17)). Sizei,t +b5 t Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macr …2014). H p between l bargaining p osits. Thus an reduce l nd bank ca arge banks (2007…201 all role in l p between l nership struc positive ass stent with AT; BT; BT period (2005 e approach or over tim ncrease the xplanatory v TLAi,t +b6 ccounting 946-052X 14, No. 1 rothink.org/ He found liquidity power of s higher liquidity apital in mainly 15). The liquidity liquidity cture on sociation the risk TEI; BH, 5..2020). of panel me. Panel number variables 6 CAPit i= bank Ei,t = E Table 1 Variab ALA ROA ROE NIM Size CAP CEA CFC Tdeposi TPIB TINF We will H 1: Ba H2: Ba k ; t= time Error term .specificatio ble it l estimate th ank capital ank capital on of variab he following l have a sig don’t have bles Name Liquid ass Return on Return on Net intere Bank size Capital Operating Financial Part of de Economic Rate of in g hypothesi nificant eff e a significa 58 sets n assets n equity est margin e g costs credits eposits c growth nflation is: fect on ban ant effect o Asian nk liquidity n bank liqu n Journal of F Measure Liquid asset Net income Net income Net intere equity Logarithm o Total capita Operating c Financial credits Total depos GDP Growt Growth of i uidity Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macr ets / total asse e / total asset e / total equit est income of total asset al / total asse costs / total a expenses sits / total ass th inflation ccounting 946-052X 14, No. 1 rothink.org/ ets s ty / total ts ets assets / total sets Table 2 Variab ALA TLA ROA ROE NIM Size CAP CEA CFC T depo TPIB TINF ALA (M standard of total term of Also T standard ROA (m deviatio Besides standard of total very dif Size (m CAP (m 2. Descriptiv ble Ob 176 176 176 176 176 176 176 176 176 sit 176 176 176 Mean = 0.0 d deviation l deposits. T f part of cred LA (mean d deviation mean = 0.0 on is low. T s ROE (mea d deviation assets. The fferent betw mean =15.3 mean =0.105 ve statistics bservations 6 6 6 6 6 6 6 6 6 6 6 6 0285). The is not high The standar dits to depo = 0.775). n is not high 012). Net in There is no b an = 0.111). is not high e standard d ween the ban 35). The mo 51). The equ s Mean 0.0285 0.775 0.012 0.111 0.026 15.35 0.1051 0.032 0.038 0.7657 0.022 0.061 liquid asse h. CD (mean rd deviation sits. Total loans h. There is ncome repre big differenc . The net inc h. Also NIM deviation b nks of samp st of banks uity represe 59 Stan devi 0.02 0.11 0.00 0.06 0.01 0.92 0.06 0.02 0.01 0.11 0.03 0.01 ets represen n = 1.193). n is high. T s represent no big diff esent on av ce between come repre M (mean =0 between ban ple. are medium ent on avera Asian ndard iation 225 142 094 631 132 2 632 26 153 181 361 167 nt on averag Total cred There is big t on averag ference betw verage 1.2% banks in te sent on ave .026). Net i nks is low. m size. age 10.51% n Journal of F Minimum 0.0028 0.12 0.000881 0.0029 0.0083 12.52 0.0086 0.000237 0.01849 0.099 -0.1051 0.0340 ge 2.85% o its represen g difference ge 77.5% o ween banks % of total as rm of ROA rage 11.1% interest mar The net int of total ass Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macr m Maxi 0.104 0.981 0.097 0.297 0.163 18.29 0.48 0.35 0.168 0.956 0.064 0.085 of total ass nt on averag e between b of total asse s in term of ssets. The s A. % of total equ rgin represe terest margi ets. ccounting 946-052X 14, No. 1 rothink.org/ imum 426 7 75 76 91 9 9 6 4 43 ets. The ge 1.193 banks in ets. The f credits. standard uity.The ent 2.6% in is not CEA (m standard CFC (m standard Tdepos T PIB Tunisia TINF (m Table 3 ALA CD TLA ROA ROE NIM Size CAP CEA CFC Tdepos TPIB TINF mean = 0.0 d deviation mean =0.038 d deviation it (mean =0 (mean = 0 a. There is n mean =0.06 .Multicolin ALA 1.000 0.0730 -0.0844 -0.1684 -0.2150 0.0158 0.0973 -0.0775 0.2036 -0.0378 sit -0.2385 0.0604 -0.1198 032). The o is low. The 8). The fina is low. The 0.7657). Tot 0.022). The negative eco 61). The ave nearity test CD 1.000 4 -0.1949 4 0.1631 0 -0.1616 0.0833 -0.2745 5 0.6962 0.0159 8 -0.0258 5 -0.5547 0.0589 8 -0.0893 operating co ere is no big ancial expen ere is no big tal deposits average eco onomic grow erage inflati TLA 1.000 0.1191 -0.1176 0.2478 0.1577 0.1346 -0.0661 -0.0117 0.0531 -0.1125 0.3496 60 osts represe g difference nses repres g difference represent onomic grow wth in 2022 ion is 6.1% ROA 1.000 0.3921 0.1073 0.0857 0.2912 -0.0267 -0.0076 0.0169 0.0679 -0.0374 Asian ent on aver of CEA be ent on aver of CFC bet t on average wth is 2.2% because of in the perio ROE 1.000 0.0834 0.3635 -0.1852 0.075 -0.047 0.3814 -0.0117 0.2111 n Journal of F age 3.2% o tween bank rage 3.8% o tween bank e 76.57% of % in the peri f negative ef od (2005…2 NIM 1.000 0.255 0.0615 -0.0641 -0.1476 -0.0711 -0.0250 0.043 Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macr of total ass ks of sample of total cred ks of sample f total assets iod (2005… ffect of COV 2020) in Tun Size 1.000 -0.3575 0.1237 0.1384 0.4336 -0.2505 0.4291 ccounting 946-052X 14, No. 1 rothink.org/ ets. The e. dits. The e s. …2020)in VID19. nisia CAP 1.000 -0.0076 -0.0227 -0.6191 0.0123 -0.1064 Table 4 CEA CFC Tdepos TPIB TINF All the Table. V Var T de CAP TIN Size ROE TPI ROA TLA CFC CEA NIM Varianc multiple equal to that sin high VI variable VIF inf 4.suite of co CE 1.0 0.3 sit -0. -0. 0.1 coefficients VIF riable eposit P NF e E IB A A C A M ce inflation e regression o the ratio o ngle indepen IF indicates es in the mo ferior to 5. rrelation be EA 000 3142 .1459 .1394 1031 s are inferio factor (VI n variables. of the overa ndent varia s that the as odel. There is no etween varia CFC 1.000 -0.1598 -0.2233 0.1271 or to 0.80. T VIF 2.20 2.13 1.90 1.67 1.56 1.53 1.43 1.31 1.27 1.17 1.12 F) is a me Mathemati all model va able. This r ssociated ind o problem 61 ables Tde 1.00 -0.0 0.16 There is no p asure of th ically, the ariance to th ratio is calc dependent v of multicol Asian eposit 00 303 602 problem of m he amount o VIF for a he variance culated for variable is h linearity. n Journal of F TPIB 1.000 -0.5512 multicoline 1/VIF 0.4542 0.4689 0.5260 0.5992 0.6422 0.6519 0.6720 0.762 0.788 0.825 0.8902 of multicoll regression of a model each indep highly colli Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macr TINF 1.000 earity linearity in model var l that includ pendent var inear with t ccounting 946-052X 14, No. 1 rothink.org/ F a set of riable is des only iable. A he other Hausm In pane choose preferre Essentia regresso In your random Table 5 ALA ROA ROE NIM Size CAP CEA CFC Tdepos TLA TPIB TINF Constan There i decreas liquidity contrary There i decreas liquidity relation The inc man test el data ana between fix ed model is ally, the tes ors in the m r case prob m effect. 5. Results of sit nt is a negativ se by 0.149 y. This resu y to result f is a negativ se by 0.028 y. This resu nship betwee crease of net alysis (the a xed effects m random eff sts look to model. The n Chi2 = 0.0 f estimation Coeff -0.149 -0.028 0.024 0.005 0.023 0.065 -1.087 -0.025 -0.003 0.013 -0.202 -0.013 ve relations 9%). The in ult if similar found by Al ve relations 8%). The i ult is contr en NIM and t interest ma analysis of model or a r fects; The a see if there null hypothe 75(it is sup n of model ( ficient 9 8 214 182 35 7 5 305 3 26 3 ship betwe ncrease of r to result fo Homaidi an ship betwee increase of ary to resu d ALA (if N argin has a 62 data over t random effe alternate hyp e is a corre esis is that t perior to 5% 1) Z -1.0 -1.2 0.27 2.14 2.56 1.45 -1.2 -1.3 -2.2 0.36 -2.1 -0.4 en ALA et return on found by Mo nd al (2019 en ALA an f return on ult found by NIM increas positive im Asian time), the H fects model. pothesis is t lation betw there is no c %). There fo 6 0 7 4 6 5 0 5 2** 6 1** 6 t ROA (if assets ha orina; Qarri ), Gjorgi an nd ROE (if equity has y Agawal (2 se by 1%, A mpact on ban n Journal of F Hausman te The null hy that the mo ween the uni correlation b or we use e Z< 0.2 0.2 0.7 0.0 0.0 0.1 0.2 0.1 0.0 0.7 0.0 0.6 ROA incre s a negativ i (2021);AlQ nd Goran (2 f ROE incr s a negativ 2019).Also ALA will in nk liquidity. Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macr est can help ypothesis is odel is fixed ique errors between the estimation o