The Role of Deposit Insurance in Liquidity Risk Management: Evidence from Systematic Banking Crises

This paper investigates the impact of foreign ownership on liquidity risk of commercial banks in Vietnam during the period 2009-2015. The regression analysis of panel data is used in the paper with the data collected from 35 Vietnamese commercial banks. The results show that higher foreign ownership is associated with lower liquidity risk of banks. In addition, credit risk and liquidity risk in previous year have a positive relationship with liquidity risk of banks in current year. The results of the study provide empirical evidence to support the important role of foreign ownership in liquidity risk management and other operations of commercial banks in Vietnam.

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Analisis Risiko Pembiayaan Bank Syariah

BISNIS : Jurnal Bisnis dan Manajemen Islam ◽

10.21043/bisnis.v7i2.6019 ◽

2019 ◽

Vol 7 (2) ◽

pp. 189

Author(s):

Rahmat Ilyas

Keyword(s):

Risk Management ◽

Negative Impact ◽

Liquidity Risk ◽

Islamic Banks ◽

Basic Tool ◽

Reputation Risk ◽

Excess Liquidity ◽

And Control ◽

Finance Risk

Financing or financing is funding provided by one party to another party to support the planned investment, whether done alone or in an institution. Risk in the banking context is a potential event, both predictable and unpredictable that has a negative impact on bank income and capital. The main reason for the occurrence of credit risk is that banks are too easy to lend or invest because they are too required to take advantage of excess liquidity, so that credit assessments are less careful in anticipating various possible business risks that they finance. Risk management is needed to identify, measure and control various types of risk, because it becomes a very basic tool to support the sustainability of the bank's business. The type of risk management that is closely related to the role of DPS is reputation risk, which in turn has an impact on displaced commercial risk, such as liquidity risk and other risks. The function and role of DPS in Islamic banks has strong relevance to the risk management of Islamic banking, namely reputation risk, which in turn impacts other risks such as liquidity risk.

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SEC proposes sweeping new liquidity risk management rules for mutual funds and ETFs

Journal of Investment Compliance ◽

10.1108/joic-02-2016-0010 ◽

2016 ◽

Vol 17 (1) ◽

pp. 74-82 ◽

Cited By ~ 1

Author(s):

Michael Rosella ◽

Bill Belitsky ◽

Alexandra Marghella

Keyword(s):

Risk Management ◽

Mutual Funds ◽

Financial Services ◽

Management Practices ◽

Liquidity Risk ◽

Securities And Exchange Commission ◽

Exchange Traded Funds ◽

Content Type ◽

Asset Value

Purpose To discuss a September 22, 2015 Securities and Exchange Commission (“SEC”) proposal for a set of broad and sweeping rules mandating that open-end mutual funds and exchange-traded funds (“ETFs”) develop and implement formalized and written liquidity risk management programs (“LRMPs”). Design/methodology/approach Describes the purpose of an LRMP, the six “liquidity buckets,” the nine factors that must be considered in determining an instrument’s liquidity, the need to continuously monitor the liquidity of each position, the set of eight mandated factors used to assess a fund’s liquidity risk, the requirement for a fund to define a three-day liquid asset minimum, the role of the fund’s board of directors, a separate rule permitting “swing pricing” to adjust net asset value to take into account the costs of unexpected redemptions or cash infusions, disclosure requirements, and proposed compliance dates. Findings In proposing this new program, the SEC stated that its goal was to enhance effective liquidity risk management practices by funds and thereby reduce the risk that funds will be unable to meet redemptions under reasonably foreseeable stressed market conditions. Originality/value Expert guidance by experienced financial services lawyers.

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The role of liquidity risk in augmenting firm value: lessons from savings and credit cooperatives in Kenya

International Journal of Financial, Accounting, and Management ◽

10.35912/ijfam.v2i4.340 ◽

2021 ◽

Vol 2 (4) ◽

pp. 295-304

Author(s):

Kariuki Florence Waitherero ◽

Stephen Muchina ◽

Stephen Macharia

Keyword(s):

Risk Management ◽

Firm Value ◽

Financial Risk ◽

Liquidity Risk ◽

Secondary Data ◽

Financial Risk Management ◽

Study Results ◽

Research Designs ◽

Credit Cooperatives

Purpose: The study aimed to examine the interaction between liquidity risk and the firm's value among Kenyan SACCOs. Research methodology: This study adopted the positivism research philosophy and utilised both descriptive and causal research designs. The study targeted all the 164 licenced SACCOs in Kenya. A sample made up of 115 respondents was selected using a stratified random sampling method. The study utilized secondary data obtained from organization’s published financial statements. Analysis of data was done using descriptive statistics and inferential analysis. Results: The study results illustrated that value of the firm was positively correlated with liquidity risk which significantly and favourably impacted the firm value; (β=0.014577, P=0.001). Limitations: The analysis and conclusions reached in this study were limited to data gathered for the five-year duration between 2012 and 2016. Contribution: This study is useful to the management of SACCOs and the Kenyan government to understand better how financial risk management can improve their firms' value. The study adds to the existing knowledge of financial risk management and firm value. Keywords: Savings and credit cooperatives, Liquidity risk, Firm value

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