Nexus between liquid ity risk and credit risk: Evidence from the South Asian region
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Tarih
2022
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Henry Stewart Publications
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
This study investigates the reciprocal relationship between liquidity risk and credit risk and their individual and joint impact on the stability of commercial banks in the South Asian countries, ie Pakistan, Bangladesh and India, from 2004 to 2016. The results reveal that liquidity risk and credit risk have a significantly positive reciprocal and economically meaningful relation-ship. Each risk type individually and jointly negatively affects banking stability. This impact has been more observable during the global financial crisis. The findings provide valuable insights for bank managers and regulatory authorities. Banks should be more concerned about mitigating their liquidity and credit risks by managing more qualified loan port folios and investing in less risky liquid assets.
Açıklama
Anahtar Kelimeler
Banking Stability, Credit Risk, Liquidity Risk, South Asia Region
Kaynak
Journal of Risk Management in Financial Institutions
WoS Q DeÄŸeri
Scopus Q DeÄŸeri
Q4
Cilt
15
Sayı
4
Künye
Khan, A. ve Yılmaz, M. K. (2022). Nexus between liquid ity risk and credit risk: Evidence from the South Asian region. Journal of Risk Management in Financial Institutions, 15(4), 391-405.
