The impact of bank liquidity on the Lebanese banks’ risk taking behavior
This paper investigates the impact of bank liquidity on the risk-taking behavior using a panel data of audited financial statement of 21 Lebanese commercial banks for the period from 2008 to 2015. Bank risk was measured as risk weighted asset ratio, loan loss provision divided by total assets, and n...
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| Format: | article |
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2018
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| Online Access: | http://hdl.handle.net/10725/15010 https://doi.org/10.15640/jibe.v6n1a3 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.researchgate.net/publication/326900006_The_Impact_of_Bank_Liquidity_on_the_Lebanese_Banks'_Risk_Taking_Behavior |
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| _version_ | 1864513470129504256 |
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| author | El Khoury, Rim |
| author_facet | El Khoury, Rim |
| author_role | author |
| dc.creator.none.fl_str_mv | El Khoury, Rim |
| dc.date.none.fl_str_mv | 2018 2018 2023-09-08T13:28:59Z 2023-09-08T13:28:59Z |
| dc.identifier.none.fl_str_mv | 2374-2208 http://hdl.handle.net/10725/15010 https://doi.org/10.15640/jibe.v6n1a3 El Khoury, R. (2018). The impact of bank liquidity on the lebanese banks’ risk taking behavior. Journal of International Business and Economics, 6(1), 12-28. http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.researchgate.net/publication/326900006_The_Impact_of_Bank_Liquidity_on_the_Lebanese_Banks'_Risk_Taking_Behavior |
| dc.language.none.fl_str_mv | en |
| dc.relation.none.fl_str_mv | Journal of International Business and Economics |
| dc.rights.*.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.title.none.fl_str_mv | The impact of bank liquidity on the Lebanese banks’ risk taking behavior |
| dc.type.none.fl_str_mv | Article info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/article |
| description | This paper investigates the impact of bank liquidity on the risk-taking behavior using a panel data of audited financial statement of 21 Lebanese commercial banks for the period from 2008 to 2015. Bank risk was measured as risk weighted asset ratio, loan loss provision divided by total assets, and net interest income ratio, while liquidity was measured as liquid asset divided by total assets. To achieve this objective, this study includes control variables and time dummy variables. Three models were tested depending on the definition of risk using the fixed effect model. Our results support the view that bank liquidity increases the bank total risk but decreases the bank lending risk. Furthermore, capital buffers stimulate banks to take more risk and size normally increases bank‟s risk in response to higher liquidity. This conclusion might suggest that higher capital requirements under Basel III are likely to increase bank risk with the implementation of new liquidity ratio. This study provides an understanding between liquidity and bank risk taking which may help regulators to modify the banking regulation in the future when bank liquidity levels change. |
| eu_rights_str_mv | openAccess |
| format | article |
| id | LAURepo_49c57775a3a06d2e0b9d09ebf581d690 |
| identifier_str_mv | 2374-2208 El Khoury, R. (2018). The impact of bank liquidity on the lebanese banks’ risk taking behavior. Journal of International Business and Economics, 6(1), 12-28. |
| language_invalid_str_mv | en |
| network_acronym_str | LAURepo |
| network_name_str | Lebanese American University repository |
| oai_identifier_str | oai:laur.lau.edu.lb:10725/15010 |
| publishDate | 2018 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| spelling | The impact of bank liquidity on the Lebanese banks’ risk taking behaviorEl Khoury, RimThis paper investigates the impact of bank liquidity on the risk-taking behavior using a panel data of audited financial statement of 21 Lebanese commercial banks for the period from 2008 to 2015. Bank risk was measured as risk weighted asset ratio, loan loss provision divided by total assets, and net interest income ratio, while liquidity was measured as liquid asset divided by total assets. To achieve this objective, this study includes control variables and time dummy variables. Three models were tested depending on the definition of risk using the fixed effect model. Our results support the view that bank liquidity increases the bank total risk but decreases the bank lending risk. Furthermore, capital buffers stimulate banks to take more risk and size normally increases bank‟s risk in response to higher liquidity. This conclusion might suggest that higher capital requirements under Basel III are likely to increase bank risk with the implementation of new liquidity ratio. This study provides an understanding between liquidity and bank risk taking which may help regulators to modify the banking regulation in the future when bank liquidity levels change.Published2023-09-08T13:28:59Z2023-09-08T13:28:59Z20182018Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article2374-2208http://hdl.handle.net/10725/15010https://doi.org/10.15640/jibe.v6n1a3El Khoury, R. (2018). The impact of bank liquidity on the lebanese banks’ risk taking behavior. Journal of International Business and Economics, 6(1), 12-28.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttps://www.researchgate.net/publication/326900006_The_Impact_of_Bank_Liquidity_on_the_Lebanese_Banks'_Risk_Taking_BehaviorenJournal of International Business and Economicsinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/150102024-07-04T08:32:45Z |
| spellingShingle | The impact of bank liquidity on the Lebanese banks’ risk taking behavior El Khoury, Rim |
| status_str | publishedVersion |
| title | The impact of bank liquidity on the Lebanese banks’ risk taking behavior |
| title_full | The impact of bank liquidity on the Lebanese banks’ risk taking behavior |
| title_fullStr | The impact of bank liquidity on the Lebanese banks’ risk taking behavior |
| title_full_unstemmed | The impact of bank liquidity on the Lebanese banks’ risk taking behavior |
| title_short | The impact of bank liquidity on the Lebanese banks’ risk taking behavior |
| title_sort | The impact of bank liquidity on the Lebanese banks’ risk taking behavior |
| url | http://hdl.handle.net/10725/15010 https://doi.org/10.15640/jibe.v6n1a3 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.researchgate.net/publication/326900006_The_Impact_of_Bank_Liquidity_on_the_Lebanese_Banks'_Risk_Taking_Behavior |