Does One Size Fit All? The Impact of Liquidity Requirements on Bank\'s Insolvency: Evidence from Iranian Listed Banks

نویسندگان

  • Ramin Mojab Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran
چکیده مقاله:

According to the Basel III regulatory framework, uniform minimum liquidity requirements have been imposed on all types of banks. Using an agent-based model of a banking system, we investigate the effects of liquidity requirements on banks' insolvency under two policy experiments in one of which the minimum liquidity requirements are applied uniformly and in the other differentially across banks. The model introduces a banking system with 12 heterogeneous banks that must also comply with two liquidity requirements while performing their daily activities of taking deposits and making loans. The model is applied to the Iranian banking system. Results illustrate that because banks respond differently to liquidity requirements, applying one size minimum liquidity requirements to all kinds of banks, strengthens the likelihood of a liquidity shock turns into banks' insolvency and could increase banking system instability. Thus our findings highlight that to achieve financial stability at the national level, policymakers should revise the current one size fits all approach when designing liquidity requirements.

برای دانلود باید عضویت طلایی داشته باشید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Corporate Governance and Liquidity Creation: Evidence from Iranian Banks

This paper examines the impact of internal bank governance on bank liquidity creation in Iran during 2010-2017. We analyze whether banks with larger size and liquidity levels creates higher levels of liquidity. The results using panel GMM method show that corporate governance has a positive effect on liquidity creation; of course, it is not significant. Also, this effect is not affecting by ban...

متن کامل

The Effects of Corporate Governance on Banks’ Performance (Evidence from of Indian Banks)

The aim of this study was an investigation of the effect of corporate governance on banks’ performance evidence from Indian Banks. This study tested a hypothesis according to the three levels of a model with three groups including the overall, public, and private sectors. This hypothesis focused on the relationship between different variables of the three levels in the new model of bank perform...

متن کامل

A1C: does one size fit all?

D iabetes specialists almost uniformly nod their heads when I ask whether they see patients whose A1C results don't match their blood glucose monitoring data. Providers used to attribute that to unreliability of the monitors or the patient records, but technological advances overcame those barriers. Some mis-matches can be attributed to inadequate temporal distribution of glucose sampling , and...

متن کامل

Professionalism: one size does not fit all.

When a child is born with or acquires special needs, the parents may find some parental tasks more difficult. They may not know how to make their tasks easier, or that some parents find it exceptionally rewarding and meaningful to raise their children with special needs. This piece explores how clinicians might share this potentially life-altering information. It also explores when and why clin...

متن کامل

One-size MAP does not fit all

One-size mean arterial pressure does not fit all The Surviving Sepsis Campaign [1] advocates maintaining a mean arterial pressure (MAP) of at least 65 mm Hg in sepsis patients undergoing resuscitation. Leone and colleagues [2], in an article published in this journal, suggest considering higher MAP targets in the resuscitation of patients with a history of arterial hypertension so they do not p...

متن کامل

منابع من

با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

ذخیره در منابع من قبلا به منابع من ذحیره شده

{@ msg_add @}


عنوان ژورنال

دوره 15  شماره 2

صفحات  181- 197

تاریخ انتشار 2020-04

با دنبال کردن یک ژورنال هنگامی که شماره جدید این ژورنال منتشر می شود به شما از طریق ایمیل اطلاع داده می شود.

کلمات کلیدی

میزبانی شده توسط پلتفرم ابری doprax.com

copyright © 2015-2023