LIQUIDITY CAPACITY AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA
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May 13, 2023
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Abstract
This study determined the effect of liquidity capacity on the financial performance of commercial banks in Kenya. Specific the study determined the effect of Net Stable Funding, Liquidity Coverage, Liquidity Gap and Provisioning for Non-Performing Loans on the financial performance of banks in Kenya. Bank competition variable was used to determine the moderating effect on the relationship between liquidity capacity and the financial performance of commercial banks in Kenya. The study was anchored on the positivism philosophy. The study used an explanatory research design. The study applied panel data models (random effects) based on the outcome of Hausman specification tests to determine the effect of liquidity capacity on the financial performance of commercial banks in Kenya. To test the moderating effect of bank competition variable on the relationship between liquidity capacity and the financial performance of commercial banks in Kenya, Keppel and Zedeck (1989) two-step procedure was used. The regression results revealed that Net Stable Funding and Liquidity Coverage have a significant positive effect on financial performance of commercial banks in Kenya. Provisioning for Non-Performing Loans Liquidity Gap and Provisioning for Non-Performing Loans had a significant negative effect on financial performance of commercial banks in Kenya. The study established that bank competition had a significant moderating effect on the relationship between liquidity capacity and the financial performance of commercial banks in Kenya. Based on these findings, the study recommends that commercial banks in Kenya need to have a good appreciation in terms of having full visibility of all cash flows on the positions of exposures across their operations. Further, they need to have a good insight in terms of the assumptions that drive the cash flows both from a liquidity point of view and from the valuation perspective to best address the terms of requirement from the regulatory standpoint. Additionally, they should empress the stress testing element into the overall equation of their operational activities as prescribed in the Basel III accords. Finally, the study recommends that all commercial banks in Kenya should incorporate liquidity costs, benefits, and risks in the performance measurement, pricing, and approval process for all significant business activities to ensure that the performance of commercial banks in Kenya is enhanced. This research was unable to identify all the possible variables with explanation power on commercial banks’ financial performance in Kenya. Hence, this formed a basis for further research.
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References
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Agbada, A. O., &Osuji, C. C. (2013).The efficacy of liquidity management and banking performance in Nigeria. International review of management and business research, 2(1), 223-233.
Akhtar, S. (2007). Pakistan: changing risk management paradigm–perspective of the regulator. In ACCA Conference-CFOs: The Opportunities and Challenges Ahead, Karachi.
Antonakis, J., Bendahan, S., Jacquart, P., & Lalive, R. (2014). Causality and endogeneity: Problems and solutions. The Oxford handbook of leadership and organizations, 93-117.
Arif, A., &NaumanAnees, A. (2012).Liquidity risk and performance of banking system. Journal of Financial Regulation and Compliance, 20(2), 182-195.
Assefa, E., Hermes, N., & Meesters, A. (2013). Competition and the performance of microfinance institutions. Applied Financial Economics, 23(9), 767-782.
Athanasoglou, P., Delis, M., &Staikouras, C. (2006).Determinants of bank profitability in the South Eastern European region.
Athanasoglou, P. P., Brissimis, S. N., & Delis, M. D. (2008).Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of international financial Markets, Institutions, and Money, 18(2), 121-136.
Bareikaite, E., &Martinkute-Kauliene, R. (2014).Liquidity Risk and its Management in Lithuanian Banking System. Mokslas: LietuvosAteitis, 6(1), 64.Berger, A. N., Carolina, S., & Financial, W. (2009). Financial Crises and Bank Liquidity Creation, (May), 7–8.
Basel III, B. C. B. S. (2013). The Liquidity Coverage Ratio and liquidity risk monitoring tools. Bank for International Settlements.
Berger, A. N., Klapper, L. F., & Turk-Ariss, R. (2017). Bank competition and financial stability. In Handbook of Competition in Banking and Finance. Edward Elgar Publishing.
Brunnermeier, M. K., &Yogo, M. (2009). A note on liquidity risk management (No. w14727).National Bureau of Economic Research.
Carlo, M. (2013). Normality tests II : (1954), 1–7. http://doi.org/10.1007/978-94-007-2427-3
Carlson, M., & Mitchener, K. J. (2005). Branch banking, bank competition, and financial stability (No. w11291). National Bureau of Economic Research.
CBK.(2014). Bank Supervision Annual Report 2014.Supervision, 86.
Cetorelli, N. (2004). Real effects of bank competition. Journal of Money, Credit and Banking, 543-558.
Cifuentes, R., Ferrucci, G., & Shin, H. S. (2005).Liquidity risk and contagion. Journal of the European Economic Association, 3(2‐3), 556-566.
Consiglio, A., Staino, A., &Zenios, S. A. (2010).Managing Liquidity Risk. Working Paper, 1-4.
Dahiat, A. (2016). Does Liquidity and Solvency Affect Banks Profitability? Evidence from Listed Banks in Jordan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), 35-40.
Dang, U. (2011).The CAMEL rating system in banking supervision.A case study.Diamond, D. W. R. (2001).Developments in banks’ liquidity profile and management.
Delis, M. D. (2012). Bank competition, financial reform, and institutions: The importance of being developed. Journal of Development Economics, 97(2), 450-465.
Diamond, D. W., &Rajan, R. G. (2005).Liquidity shortages and banking crises. The Journal of finance, 60(2), 615-647.
Eccles, R., Herz, R., Keegan, M., & Phillips, D. (2013).The risk of risk.Balance Sheet.
Falconer, B. (2001). Structural liquidity: the worry beneath the surface. Balance Sheet, 9(3), 13-19.
Fu, X. M., Lin, Y. R., & Molyneux, P. (2014). Bank competition and financial stability in Asia Pacific. Journal of Banking & Finance, 38, 64-77.
Ghosh, A. (2012). Managing risks in commercial and retail banking.John Wiley & Sons.
Goddard, J., Molyneux, P., & Wilson, J. O. (2004). The profitability of European banks: a cross‐sectional and dynamic panel analysis. The Manchester School, 72(3), 363-381.
Goodhart, C. (2008). Liquidity risk management. Banque de France Financial Stability Review, 11, 39-44.
Gudmundsson, R., Ngoka-Kisinguh, K., & Odongo, M. T. (2013). The role of capital requirements on bank competition and stability: The case of the Kenyan banking industry. Kenya Bankers Association-KBA Centre for Research on Financial Markets and Policy Working Paper Series.
Halling, M., & Hayden, E. (2006). Bank failure prediction: a two-step survival time approach.
Hartlage, A. W. (2012). The Basel III Liquidity Coverage ratio and financial stability. Michigan Law Review, 453-483.
Holmström, B., &Tirole, J. (2000). Liquidity and risk management. Journal of Money, Credit and Banking, 295-319.
Ibrahim, S. S. (2017). The Impacts of Liquidity on Profitability in Banking Sectors of Iraq: A Case of Iraqi Commercial Banks. International Journal of Finance & Banking Studies, 6(1), 113.
Jeanne, O., &Svensson, L. E. (2007).A credible commitment to optimal escape from a liquidity trap: The role of the balance sheet of an independent central bank. The American Economic Review, 97(1), 474-490.
Jenkinson, N. (2008). Strengthening regimes for controlling liquidity risk: some lessons from the recent turmoil.
Jesshim, K. (2003). Multicollinearity in Regression Models. Multicollinearity Doc, 1–8.
Kamau, A., & Were, M. (2013). What drives banking sector performance in Kenya?. Global Business and Economics Research Journal, 2(4), 45-59.
Kariuki, P. W., Muturi, W. M., & Ngugi, P. K. Profitability and intermediation efficiency: Evidence from deposit-taking saving and credit co-operative societies in Kenya. International Journal of Economics & Finance (IJEF), 2.
Kerr, M. K., Martin, M., & Churchill, G. A. (2000).Analysis of variance for gene expression microarray data. Journal of computational biology, 7(6), 819-837.
Konadu, J. S. (2009). Liquidity and Profitability: empirical evidence from listed Banks in Ghana (Doctoral dissertation).
Kosmidou, K., &Zopounidis, C. (2008).Measurement of bank performance in Greece. South-Eastern Europe Journal of Economics, 1(1), 79-95.
Lartey, V. C., Antwi, S., & Boadi, E. K. (2013).The relationship between liquidity and profitability of listed banks in Ghana. International Journal of Business and Social Science, 4(3).
Landskroner, Y., & Paroush, J. Liquidity Risk Management, Structure, and Competition in Banking. Technical Finance, 113.
Li, Y. (2007). Determinants of banks' profitability and its implication on risk management practices: Panel evidence from the UK in the period 1999-2006.
Maaka, Z. A. (2013). The relationship between liquidity risk and financial performance of commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
MacKinnon, D. P., Fairchild, A. J., & Fritz, M. S. (2007). Mediation analysis. Annu. Rev. Psychol., 58, 593-614.
Maina, E. K. (2017). Effect of Ownership, Capital and Cost Structures on Financial Performance of Commercial Banks in Kenya (Doctoral dissertation, United States International University-Africa).
Mason, N. M., & Ricker-Gilbert, J. (2013). Disrupting demand for commercial seed: Input subsidies in Malawi and Zambia. World Development, 45, 75-91.Markets, C. (2010). The Journal, (September).
Mugenda, O. M., &Mugenda, A. G. (2003).Qualitative and quantitative approaches. Research Methods Africa Center for Technology Studies (Acts) Press. Nairobi Kenya.
Muranaga, J., &Ohsawa, M. (1997).Measurement of liquidity risk in the context of market risk calculation. a BIS volume entitled The Measurement of Aggregate Market Risk.
Muriithi, J. G., &Waweru, K. M. (2017). Liquidity Risk and Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Finance, 9(3), 256.
Musau, S., Muathe, S., & Mwangi, L. (2018). Financial inclusion, bank competitiveness and credit risk of commercial banks in Kenya. International Journal of Financial Research, 9(1), 203.
Musembi, D. M., Ali, B., &Kingi, W. (2016). Effect of Liquidity Risk Determinants on the Financial Performance of Commercial Banks Listed At the Nairobi Securities Exchange. Imperial Journal of Interdisciplinary Research, 2(11).
Mwangi, Y. K. (2014). The effect of risk management on the financial performance of commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
Mwega, F. M. (2009). ‘The Effects of the Global Financial Crisis: A Case Study of Kenya Phase I’. Paper Presented at an Overseas Development Institute (ODI) Workshop in London, February 11-13, 2009. Available on the Internet.
Odunga, R. M. (2016). Specific Performance Indicators, Market Share and Operating Efficiency for Commercial Banks in Kenya. International Journal of Finance and Accounting, 5(3), 135-145.
Okun, D. M. (2012). The effect of level of deposits on the financial performance of Commercial Banks in Kenya (Doctoral dissertation).
Oluwasegun, A. J., & Samuel, A. O. (2015). The Impact of Liquidity on Nigerian Bank Performance : A Dynamic Panel Approach the Impact of Liquidity on Nigerian Bank
Olweny, T., &Shipho, T. M. (2011).Effects of banking sectoral factors on the profitability of commercial banks in Kenya. Economics and Finance Review, 1(5), 1-30.
Ongore, V. O., &Kusa, G. B. (2013).Determinants of the financial performance of commercial banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237.
Otieno, S., &Nyagol, M. (2016).The relationship between Credit risk management and financial performance : empirical evidence from microfinance banks in, 7(6), 115–142.
Pecina, P. (1978). Observation of the sporadic background in Nov. 1974. Bulletin of the Astronomical Institutes of Czechoslovakia, 29, 340-344.
Saunders, M., Lewis, P., Thornhill, A., & Wang, C. L. (2009).Analysing quantitative data. Research Methods for Business Students, in MNK Saunders, P. Lewis, & A. Thornhill (Eds.), Research Methods for Business Students,(5th ed.), Prentice Hall, UK.
Scholtens, B. (2000). Competition, growth, and performance in the banking industry. Center for Financial Institutions, Working Papers 00-18, Wharton School Center for Financial Institutions, University of Pennsylvania.
Sensarma, R., &Jayadev, M. (2009). Are bank stocks sensitive to risk management?. The Journal of Risk Finance, 10(1), 7-22.
Siaw, S. A. M. U. E. L. (2013). Liquidity Risk and Bank Profitability in Ghana (Doctoral dissertation, University of Ghana).
Social Research Association.(2003). Ethical guidelines.Social Research Association, (December), 66.
Sosa-escudero, W. (2009).Heteroskedasticity and Weighted Least Squares.
Tabari, N. A. Y., Ahmadi, M., &Emami, M. (2013).The effect of liquidity risk on the performance of commercial banks. International Research Journal of Applied and Basic Sciences, 4(6), 1624-1631.
Uddin, S. S., & Suzuki, Y. (2014). The impact of competition on bank performance in Bangladesh: an empirical study. International Journal of Financial Services Management 2, 7(1), 73-94.
Varotto, S. (2011). Liquidity risk, credit risk, market risk and bank capital. International Journal of Managerial Finance, 7(2), 134-152.
Vodová, P. (2011). Determinants of commercial banks' liquidity in the Czech Republic. ratio, 50, 3.Voss, D. S. (2004). Encyclopedia of Social Measurement.
Williams, R. (2015). Heteroskedasticity.Linear Regression Models.
Yahaya, O. A., Farouk, B. K. U., Lamidi, S. Y., Yusuf, M. J., & Dania, I. S. (2015). Impact of Competition on the Financial Performance of Listed Deposit Money Banks in Nigeria. Journal of Economics and Sustainable Development, 6(18), 52-61.
Zheng, H., &Shen, Y. (2008). Jump liquidity risk and its impact on CVaR. The Journal of Risk Finance, 9(5), 477-492.
Agbada, A. O., &Osuji, C. C. (2013).The efficacy of liquidity management and banking performance in Nigeria. International review of management and business research, 2(1), 223-233.
Akhtar, S. (2007). Pakistan: changing risk management paradigm–perspective of the regulator. In ACCA Conference-CFOs: The Opportunities and Challenges Ahead, Karachi.
Antonakis, J., Bendahan, S., Jacquart, P., & Lalive, R. (2014). Causality and endogeneity: Problems and solutions. The Oxford handbook of leadership and organizations, 93-117.
Arif, A., &NaumanAnees, A. (2012).Liquidity risk and performance of banking system. Journal of Financial Regulation and Compliance, 20(2), 182-195.
Assefa, E., Hermes, N., & Meesters, A. (2013). Competition and the performance of microfinance institutions. Applied Financial Economics, 23(9), 767-782.
Athanasoglou, P., Delis, M., &Staikouras, C. (2006).Determinants of bank profitability in the South Eastern European region.
Athanasoglou, P. P., Brissimis, S. N., & Delis, M. D. (2008).Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of international financial Markets, Institutions, and Money, 18(2), 121-136.
Bareikaite, E., &Martinkute-Kauliene, R. (2014).Liquidity Risk and its Management in Lithuanian Banking System. Mokslas: LietuvosAteitis, 6(1), 64.Berger, A. N., Carolina, S., & Financial, W. (2009). Financial Crises and Bank Liquidity Creation, (May), 7–8.
Basel III, B. C. B. S. (2013). The Liquidity Coverage Ratio and liquidity risk monitoring tools. Bank for International Settlements.
Berger, A. N., Klapper, L. F., & Turk-Ariss, R. (2017). Bank competition and financial stability. In Handbook of Competition in Banking and Finance. Edward Elgar Publishing.
Brunnermeier, M. K., &Yogo, M. (2009). A note on liquidity risk management (No. w14727).National Bureau of Economic Research.
Carlo, M. (2013). Normality tests II : (1954), 1–7. http://doi.org/10.1007/978-94-007-2427-3
Carlson, M., & Mitchener, K. J. (2005). Branch banking, bank competition, and financial stability (No. w11291). National Bureau of Economic Research.
CBK.(2014). Bank Supervision Annual Report 2014.Supervision, 86.
Cetorelli, N. (2004). Real effects of bank competition. Journal of Money, Credit and Banking, 543-558.
Cifuentes, R., Ferrucci, G., & Shin, H. S. (2005).Liquidity risk and contagion. Journal of the European Economic Association, 3(2‐3), 556-566.
Consiglio, A., Staino, A., &Zenios, S. A. (2010).Managing Liquidity Risk. Working Paper, 1-4.
Dahiat, A. (2016). Does Liquidity and Solvency Affect Banks Profitability? Evidence from Listed Banks in Jordan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), 35-40.
Dang, U. (2011).The CAMEL rating system in banking supervision.A case study.Diamond, D. W. R. (2001).Developments in banks’ liquidity profile and management.
Delis, M. D. (2012). Bank competition, financial reform, and institutions: The importance of being developed. Journal of Development Economics, 97(2), 450-465.
Diamond, D. W., &Rajan, R. G. (2005).Liquidity shortages and banking crises. The Journal of finance, 60(2), 615-647.
Eccles, R., Herz, R., Keegan, M., & Phillips, D. (2013).The risk of risk.Balance Sheet.
Falconer, B. (2001). Structural liquidity: the worry beneath the surface. Balance Sheet, 9(3), 13-19.
Fu, X. M., Lin, Y. R., & Molyneux, P. (2014). Bank competition and financial stability in Asia Pacific. Journal of Banking & Finance, 38, 64-77.
Ghosh, A. (2012). Managing risks in commercial and retail banking.John Wiley & Sons.
Goddard, J., Molyneux, P., & Wilson, J. O. (2004). The profitability of European banks: a cross‐sectional and dynamic panel analysis. The Manchester School, 72(3), 363-381.
Goodhart, C. (2008). Liquidity risk management. Banque de France Financial Stability Review, 11, 39-44.
Gudmundsson, R., Ngoka-Kisinguh, K., & Odongo, M. T. (2013). The role of capital requirements on bank competition and stability: The case of the Kenyan banking industry. Kenya Bankers Association-KBA Centre for Research on Financial Markets and Policy Working Paper Series.
Halling, M., & Hayden, E. (2006). Bank failure prediction: a two-step survival time approach.
Hartlage, A. W. (2012). The Basel III Liquidity Coverage ratio and financial stability. Michigan Law Review, 453-483.
Holmström, B., &Tirole, J. (2000). Liquidity and risk management. Journal of Money, Credit and Banking, 295-319.
Ibrahim, S. S. (2017). The Impacts of Liquidity on Profitability in Banking Sectors of Iraq: A Case of Iraqi Commercial Banks. International Journal of Finance & Banking Studies, 6(1), 113.
Jeanne, O., &Svensson, L. E. (2007).A credible commitment to optimal escape from a liquidity trap: The role of the balance sheet of an independent central bank. The American Economic Review, 97(1), 474-490.
Jenkinson, N. (2008). Strengthening regimes for controlling liquidity risk: some lessons from the recent turmoil.
Jesshim, K. (2003). Multicollinearity in Regression Models. Multicollinearity Doc, 1–8.
Kamau, A., & Were, M. (2013). What drives banking sector performance in Kenya?. Global Business and Economics Research Journal, 2(4), 45-59.
Kariuki, P. W., Muturi, W. M., & Ngugi, P. K. Profitability and intermediation efficiency: Evidence from deposit-taking saving and credit co-operative societies in Kenya. International Journal of Economics & Finance (IJEF), 2.
Kerr, M. K., Martin, M., & Churchill, G. A. (2000).Analysis of variance for gene expression microarray data. Journal of computational biology, 7(6), 819-837.
Konadu, J. S. (2009). Liquidity and Profitability: empirical evidence from listed Banks in Ghana (Doctoral dissertation).
Kosmidou, K., &Zopounidis, C. (2008).Measurement of bank performance in Greece. South-Eastern Europe Journal of Economics, 1(1), 79-95.
Lartey, V. C., Antwi, S., & Boadi, E. K. (2013).The relationship between liquidity and profitability of listed banks in Ghana. International Journal of Business and Social Science, 4(3).
Landskroner, Y., & Paroush, J. Liquidity Risk Management, Structure, and Competition in Banking. Technical Finance, 113.
Li, Y. (2007). Determinants of banks' profitability and its implication on risk management practices: Panel evidence from the UK in the period 1999-2006.
Maaka, Z. A. (2013). The relationship between liquidity risk and financial performance of commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
MacKinnon, D. P., Fairchild, A. J., & Fritz, M. S. (2007). Mediation analysis. Annu. Rev. Psychol., 58, 593-614.
Maina, E. K. (2017). Effect of Ownership, Capital and Cost Structures on Financial Performance of Commercial Banks in Kenya (Doctoral dissertation, United States International University-Africa).
Mason, N. M., & Ricker-Gilbert, J. (2013). Disrupting demand for commercial seed: Input subsidies in Malawi and Zambia. World Development, 45, 75-91.Markets, C. (2010). The Journal, (September).
Mugenda, O. M., &Mugenda, A. G. (2003).Qualitative and quantitative approaches. Research Methods Africa Center for Technology Studies (Acts) Press. Nairobi Kenya.
Muranaga, J., &Ohsawa, M. (1997).Measurement of liquidity risk in the context of market risk calculation. a BIS volume entitled The Measurement of Aggregate Market Risk.
Muriithi, J. G., &Waweru, K. M. (2017). Liquidity Risk and Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Finance, 9(3), 256.
Musau, S., Muathe, S., & Mwangi, L. (2018). Financial inclusion, bank competitiveness and credit risk of commercial banks in Kenya. International Journal of Financial Research, 9(1), 203.
Musembi, D. M., Ali, B., &Kingi, W. (2016). Effect of Liquidity Risk Determinants on the Financial Performance of Commercial Banks Listed At the Nairobi Securities Exchange. Imperial Journal of Interdisciplinary Research, 2(11).
Mwangi, Y. K. (2014). The effect of risk management on the financial performance of commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
Mwega, F. M. (2009). ‘The Effects of the Global Financial Crisis: A Case Study of Kenya Phase I’. Paper Presented at an Overseas Development Institute (ODI) Workshop in London, February 11-13, 2009. Available on the Internet.
Odunga, R. M. (2016). Specific Performance Indicators, Market Share and Operating Efficiency for Commercial Banks in Kenya. International Journal of Finance and Accounting, 5(3), 135-145.
Okun, D. M. (2012). The effect of level of deposits on the financial performance of Commercial Banks in Kenya (Doctoral dissertation).
Oluwasegun, A. J., & Samuel, A. O. (2015). The Impact of Liquidity on Nigerian Bank Performance : A Dynamic Panel Approach the Impact of Liquidity on Nigerian Bank
Olweny, T., &Shipho, T. M. (2011).Effects of banking sectoral factors on the profitability of commercial banks in Kenya. Economics and Finance Review, 1(5), 1-30.
Ongore, V. O., &Kusa, G. B. (2013).Determinants of the financial performance of commercial banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237.
Otieno, S., &Nyagol, M. (2016).The relationship between Credit risk management and financial performance : empirical evidence from microfinance banks in, 7(6), 115–142.
Pecina, P. (1978). Observation of the sporadic background in Nov. 1974. Bulletin of the Astronomical Institutes of Czechoslovakia, 29, 340-344.
Saunders, M., Lewis, P., Thornhill, A., & Wang, C. L. (2009).Analysing quantitative data. Research Methods for Business Students, in MNK Saunders, P. Lewis, & A. Thornhill (Eds.), Research Methods for Business Students,(5th ed.), Prentice Hall, UK.
Scholtens, B. (2000). Competition, growth, and performance in the banking industry. Center for Financial Institutions, Working Papers 00-18, Wharton School Center for Financial Institutions, University of Pennsylvania.
Sensarma, R., &Jayadev, M. (2009). Are bank stocks sensitive to risk management?. The Journal of Risk Finance, 10(1), 7-22.
Siaw, S. A. M. U. E. L. (2013). Liquidity Risk and Bank Profitability in Ghana (Doctoral dissertation, University of Ghana).
Social Research Association.(2003). Ethical guidelines.Social Research Association, (December), 66.
Sosa-escudero, W. (2009).Heteroskedasticity and Weighted Least Squares.
Tabari, N. A. Y., Ahmadi, M., &Emami, M. (2013).The effect of liquidity risk on the performance of commercial banks. International Research Journal of Applied and Basic Sciences, 4(6), 1624-1631.
Uddin, S. S., & Suzuki, Y. (2014). The impact of competition on bank performance in Bangladesh: an empirical study. International Journal of Financial Services Management 2, 7(1), 73-94.
Varotto, S. (2011). Liquidity risk, credit risk, market risk and bank capital. International Journal of Managerial Finance, 7(2), 134-152.
Vodová, P. (2011). Determinants of commercial banks' liquidity in the Czech Republic. ratio, 50, 3.Voss, D. S. (2004). Encyclopedia of Social Measurement.
Williams, R. (2015). Heteroskedasticity.Linear Regression Models.
Yahaya, O. A., Farouk, B. K. U., Lamidi, S. Y., Yusuf, M. J., & Dania, I. S. (2015). Impact of Competition on the Financial Performance of Listed Deposit Money Banks in Nigeria. Journal of Economics and Sustainable Development, 6(18), 52-61.
Zheng, H., &Shen, Y. (2008). Jump liquidity risk and its impact on CVaR. The Journal of Risk Finance, 9(5), 477-492.