The determinants of liquidity of Indian listed commercial banks: A panel data approach

What is it about?

This study investigates the factors that are affecting the liquidity (LQD) of Indian listed banks. The LQD of banks is very important for everybody in any society. The study uses secondary data that were collected from the ProwessIQ data- base. Different analytical models are used to test the impact of internal and external determinants on the LQD of Indian listed banks. The results indicated that bank size, capital adequacy ratio, deposits ratio, operation efficiency ratio, and return on assets ratio are found to have a significant positive impact on LQD. The results also indicated that interest rate, and exchange rate, are found to have a significant effect on LQD. The study recommended that bankers should consider assets quality in such a way that improves banks’ performance.

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Why is it important?

It is open access and very important study in India

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