Determinants of Liquidity Risk in The Banking Sector: Evidence from Turkish Deposit Banks
Chapter from the book: Şahin, C. (ed.) 2024. Current Financial Developments and Practices.

Burhan Erdoğan
Sivas Cumhuriyet University

Synopsis

Since the 20th century, the world economy has become more integrated, and although it has introduced many innovations into financial life, it has also paved the way for the introduction of many new risk factors. Banks face many different types of risk factors while carrying out their activities. Liquidity risk is one of the most important of these risks. This study aims to analyze the factors affecting the liquidity risk of 19 banks operating in deposit banking in Turkey between 2012 and 2022. According to the results of the study in which panel data analysis methods were applied, there is a positive and statistically significant relationship between liquidity risk and bank size, while there is a statistically significant and negative relationship between liquidity risk and net interest margin, inflation and covid pandemic crisis.

How to cite this book

Erdoğan, B. (2024). Determinants of Liquidity Risk in The Banking Sector: Evidence from Turkish Deposit Banks. In: Şahin, C. (ed.), Current Financial Developments and Practices. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub494.c2077

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Published

October 26, 2024

DOI