Article Name - How Common Factors Shape the Liquidity and Profitability of Banks
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Introduction
Liquidity and profitability are two fundamental pillars that determine
the stability and success of banks. Liquidity ensures a bankâ??s ability to
meet its short-term obligations, while profitabili ...
2025-01-31
Description
Liquidity plays a critical role in maintaining trust and confidence in the
banking sector. A bank's ability to promptly meet withdrawal requests and
honor its obligations is essential for avoiding l ...
2025-01-31
Conclusion
In conclusion, liquidity and profitability are interdependent yet often
competing objectives for banks. The ability to strike an optimal balance
between these two metrics is influenced by a combinat ...
2025-01-31
References
Elekdag, Selim, Sheheryar Malik and Srobona Mitra. "Breaking the bank? A probabilistic assessment of Euro area bank profitability." J Bank Financ 120 (2020): 105949.
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