The Nexus between liquidity creation and capital: Evidence from Indian Banks

Sinha, Pankaj and Grover, Naina (2022) The Nexus between liquidity creation and capital: Evidence from Indian Banks. Finance India, XXXVI (2). pp. 485-502. ISSN 0970-3772

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Abstract

This study explores the interrelationship between liquidity creation and capital for scheduled commercial banks operating in India during 2005-2019. Liquidity creation construct is developed following the approach of Berger and Bouwman (2009). Using a simultaneous equation model with GMM estimator, a negative bi-directional relationship is observed between the two, which suggest higher capital will decrease liquidity creation and vice versa. This relationship holds for different ownership structures as well.

Item Type:	Article
Keywords:	Banks \| GMM \| Liquidity \| Crisis \| SCB \| Econometric \| India
Subjects:	Social Sciences and humanities > Business, Management and Accounting > General Management
JGU School/Centre:	Jindal Global Business School
Depositing User:	Amees Mohammad
Date Deposited:	05 Sep 2022 04:51
Last Modified:	05 Sep 2022 04:51
Official URL:	https://financeindia.org/volumes/v36no2.htm
URI:	https://pure.jgu.edu.in/id/eprint/4349

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