خلاصة:
A bank as a business units needs to have liquid assets which can be easily converted into cash at short notice. Thus the concept of liquidity risk management is important for any commercial banks. The impact of liquidity position in management of banks have remained significant, though very elusive in the process of investment analysis vis-à-vis bank portfolio management. In addition, liquidity risk management affects banking performance. In this paper, according to existing theoretical and empirical literature, the suitable system for measuring liquidity risk management is defined. Then, the effect of liquidity risk management on the profitability and survival of banks has been investigated. For this purpose, a model is estimated using panel data method and the financial statements of banks for the period 2005-2017. The results of the study show that there is a significant relationship between risk management and profitability and bank survivability. As poor liquidity risk management reduces the profitability and survival of banks
ملخص الجهاز:
Measuring Liquidity Risk Management and Impact on Bank Performance in Iran Azam Ahmadyan* Received: 29 Jul 2018 Approved: 26 Jan 2019 A bank as a business units needs to have liquid assets which can be easily converted into cash at short notice .
Then, the effect of liquidity risk management on the profitability and survival of banks has been investigated.
As poor liquidity risk management reduces the profitability and survival of banks.
, 2015) 3 Literature Review Anghelache and Bodo (2018), argue that in bank management, special attention must be paid to identifying the premises for its occurrence and, in this way, to provide measures to prevent or, at least, to limit the effects of liquidity risk.
The Focus of Murithi and Munyua (2017), examine the effect of liquidity risk on financial performance of commercial banks in Kenya.
Problem of liquidity risk related to regulatory requirement will decrease and this will gives banks to increase their profitability and improve their financial performance.
4 Methodology and Empirical Result The purpose of this paper is to investigate the effect of liquidity risk management on the performance of banks of Iran.
The results show, if LRM1is 1 and 2, bank has good liquidity risk management and the negative relationship will exist between profitability and LRM1 and positive relationship between survival and LRM1.
The results of the survey show that poor liquidity risk management would reduce bank profitability and survivability.
The Impact of Credit and Liquidity Risk Management on the Profitability of Deposit Money Banks in Nigeria.