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The impact of liquidity management on organizational performance of banking industries in Sri Lanka

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dc.contributor.author Firnas Aslamil, A.C
dc.date.accessioned 2015-09-21T08:42:49Z
dc.date.available 2015-09-21T08:42:49Z
dc.date.issued 2012
dc.identifier.uri http://hdl.handle.net/123456789/609
dc.description Degree of Bachelor of Business Administration (BBA) en_US
dc.description.abstract The recent crisis has underlined the importance of sound bank liquidity management. In response, regulators are devising new liquidity standards with the aim of making the financial system more stable and resilient. In this research, the researcher analyzes the impact of liquid asset holdings on bank profitability for a sample of 5 Sri Lankan resident banks from the period of 2006-2010. Results suggest that profitability is improved for banks that hold some liquid assets, however, there is a point at which holding further liquid assets diminishes a banks' profitability, all else equal. Moreover, empirical evidence also suggests that this relationship varies depending on a bank's business model and the state of the economy. These results are particularly relevant as policymakers devise new standards establishing an appropriate level of liquidity for banks. While it is generally agreed upon that banks undervalued liquidity prior to the recent financial crisis, one must also consider the tradeoff between resilience to liquidity shocks and the cost of holding lower-yielding liquid assets as the latter may impact banks' ability to generate revenues, increase capital and extend credit en_US
dc.language.iso en en_US
dc.publisher Faculty of Management and Commerce SEUSL en_US
dc.subject Management en_US
dc.title The impact of liquidity management on organizational performance of banking industries in Sri Lanka en_US
dc.type Thesis en_US


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